The Data#3 Limited (ASX: DTL) share price is soaring today after the company provided a positive update to the ASX.
At the time of writing, the business technology solutions company's shares are up 8.68% to $5.26 apiece. However, earlier in the day, its share price hit a near two-month high of $5.50 — a gain of 13.64% on its previous close.
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Data#3 expects to deliver strong pre-tax profit growth
Investors are driving the Data#3 share price higher after the company announced it expects to "deliver a strong FY22 performance".
Data#3 advised consolidated net profit before tax is forecast to come in at approximately $44 million for the financial year ending 30 June 2022. This represents an increase of more than 19% on the prior year's $36.9 million.
Management noted that extensive product delays due to ongoing supply chain constraints impacted the FY22 result. It said: "This has coincided with the spike in demand traditionally experienced during the fourth quarter, resulting in an inflated product backorder at year-end."
Subsequently, the pre-tax profit with this backorder is estimated to be a minimum of $6 million. This is expected to be realised in the first half of FY23, and is double the backorder at the end of FY21.
It is also anticipated the global computer chip shortage will continue into the new financial year.
Data#3 said it will release its audited full-year results for the 2022 financial year on 18 August.
In addition, the board will opt to maintain its dividend payout ratio handed to shareholders, as is has done in previous years.
Data#3 share price snapshot
A choppy macro environment has led the Data#3 share price to travel in circles over the past 12 months.
Its shares are currently down more than 5% for the period, despite today's gains.
Notably, the company's shares touched a 52-week low of $4.30 in mid-June following extreme volatility on the ASX.
Based on its current price, Data#3 presides a market capitalisation of roughly $737.79 million.
