Why the Data#3 (ASX:DTL) share price is rocketing 11% today?

The company’s shares are surging to fresh 52-week highs.

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Man looking excitedly at ASX share price gains on computer screen against backdrop of streamers

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Key Points

  • Data#3 share price hits 52-week high of $6.54 during morning trade
  • Net profit before tax is expected to be above previous guidance
  • Continued demand for Data#3 products

The Data#3 Limited (ASX: DTL) share price is on the move today following a positive update regarding its financial performance. The company’s shares reached a 52-week high of $6.54 today before slightly treading lower.

At the time of writing, the business technology solutions company’s shares are fetching for $6.44, up 10.84%.

Data#3 anticipates strong earnings growth

Investors are pushing Data#3 shares higher on Tuesday morning after digesting the company’s latest announcement.

According to its release, Data#3 advised it expects to report a record performance for the half-year result for FY22.

Consolidated net profit before tax (NPBT) is forecasted to be slightly ahead of the top end guidance previously reported.

In October, Data#3 informed investors at its annual general meeting (AGM) that it was predicting a NPBT of $15 million to $18 million.

If this is achieved, NPBT for the H1 FY22 period along with earnings per share would represent around a 30% increase than H1 FY21 levels.

A global computer chip shortage was experienced throughout 2021 when demand spiked earlier than anticipated. Consequently, Data#3 has encountered a larger product backlog order for the year’s end. This led to a profit of around $3 million to be realised in FY22.

Data#3 revealed that its audited full-year results for the 2021 financial year will be released on 17 February. In addition, management noted that it will announce its interim dividend to shareholders.

About the Data#3 share price

Over the last 12 months, Data#3 shares have climbed around 10% higher, but remain flat for 2022.

At today’s price, Data#3 has a market capitalisation of roughly $896.77 million, with approximately 154.35 million shares on its registry.

Should you invest $1,000 in Data#3 right now?

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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