Up 8%: This ASX 200 tech stock just reported boosted sales, profit and dividends

Investors clearly loved what this company had to say today.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a fairly horrid day for the Australian share market and ASX shares so far this Wednesday. At the time of writing, the ASX 200 has fallen by a nasty 0.8%, leaving the index at just over 8,400 points. But let's talk about an ASX 200 tech stock that is going the other way today.

That ASX 200 tech stock is Data #3 Ltd (ASX: DTL). Data#3 shares closed at $7.41 each yesterday afternoon. But this morning, those same shares opened at $7.50 before rising as high as $8 each. At present, the company has cooled off a little but remains up a solid 7.76% at $7.98 a share.

Investors clearly approve of what Data#3 had to tell them today. So let's dive into exactly what that was.

Happy man working on his laptop.

Image source: Getty Images

ASX 200 tech share soars on earnings

This morning, Data#3 revealed its latest earnings, covering the half-year to 31 December. For these six months, the company brought in $1.4 billion in gross sales, a 7.5% rise over the same period in 2023.

Earnings before interest and tax (EBIT) increased by 4.6% to $26 million, which helped the company post a gross profit of $143.6 million, a 10% jump.

Net profits before tax lifted by 4.1% to $32 million, while net profits after tax jumped 4.3% to $22.4 million.

On an earnings per share (EPS) basis, Data#3 revealed an EPS metric of 14.43 cents, a 4.2% improvement from the prior period.

Once again, Data#3 affirmed that it held no borrowings on its balance sheet over the half-year.

This all enabled this ASX 200 tech stock to unveil an interim dividend of 13.1 cents per share for the period, a rise of 3.97% over last year's interim payout of 12.6 cents per share. As is typical for Data #3, this dividend will come with full franking credits attached.

Together with the September final dividend of 12.9 cents, it takes Data#3's full-year payouts to a fully franked 26 cents per share.

Data#3 share price snapshot

It's clear that investors liked what they saw from this ASX 200 tech stock this morning, judging from the enthusiastic share price reaction. However, this jump is just the latest in what has been a very lucrative few months for the Data#3 share price.

As it currently stands, Data#3 shares are now up an impressive 26% in 2025 to date. The company has also enjoyed a rough 30% gain since hitting a new 52-week low of $6.12 a share in mid-January.

However, zooming out, and the gains haven't been quite as spectacular. As it currently stands, Data#3 shares are sitting on a 12-month gain of 2.7%.

At the current Data#3 share price, this ASX 200 tech stock is trading on a price-to-earnings (P/E) ratio of 28.6, with a trailing dividend yield of 3.2%.

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

More on Technology Shares

A bright graphic showing neon green and red arrows in a downwards direction with a world map behind them in neon blue
Technology Shares

Does Macquarie rate Life360 shares a buy, hold or sell?

Does recent share price weakness present an opportunity?

Read more »

An oil worker in front of a pumpjack using a tablet.
Technology Shares

Why are shares in this ASX tech stock, which operates in the oil and gas space, charging higher?

Even after this share price jump, the shares could be good value.

Read more »

A man has computer-generated images rushing through his head, indicating an AI (artificial intelligence) concept of a communication network.
Technology Shares

Up 14% in April, is it too late to buy WiseTech shares?

The stock remains well below its highs and may now offer a more compelling opportunity.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
Technology Shares

Up 670%: Is it too late to buy this ASX defence stock?

This high-flying stock could still have further to run according to Bell Potter.

Read more »

Man happy to be holding a blue cloud representing cloud computing.
Technology Shares

3 ASX shares benefiting from the rise of digital infrastructure

Artificial intelligence and cloud computing need the help of these shares.

Read more »

Soldier in military uniform using laptop for drone controlling.
Technology Shares

Why this ASX defence stock is falling today despite a massive 660% run

EOS shares pull back as a contract delay offsets a solid quarterly result.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Technology Shares

ASX tech stock charges higher on big acquisition news

Let's see what the software company has announced this morning.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Technology Shares

These beaten down ASX 200 tech stocks could rise 55% to 60%

Brokers think these stocks could rise strongly from current levels.

Read more »