The Dicker Data Ltd (ASX: DDR) share price has surged 4.76% higher today after the release of results for the first half of the year to 30 June 2020.
The Dicker Data share price is trading at $8.14 at the time of writing after finishing the day yesterday at $7.77.
How did Dicker Data perform in 1H FY20?
The Australian wholesaler and distributor of computer software and hardware delivered strong growth across all key metrics for 1H FY20.
Dicker Data achieved a milestone breakthrough with a total revenue of $1,006.1 million, up 18.1% compared to the prior corresponding period. This was underpinned by growth in established and new vendors, increased gross profit margins, and maintenance and control of operation leverage.
At country level, Australia and New Zealand grew revenues by 17.2% and 31.9%, respectively.
On the bottom line, net profit after tax jumped 23.6% to $29.4 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $47.1 million, up 27.6% from the previous $37 million realised.
The company recorded a positive cash flow from operating activities of $30.3 million, an increase of $14.6 million.
Earnings per share leapt 16% to 17.08 cents.
Earlier this month, Dicker Data declared a full franked dividend of 7.5 cents per share to be paid on 1 September.
How good is the outlook?
Management noted that the business has proved resilient as the coronavirus outbreak continues. The recent surge in demand in remote work and virtual working stations across the company’s hardware and software portfolio highlighted the essential role played by IT distribution in enabling business continuity.
Furthermore, Dicker Data anticipates demand to remain strong moving into the second half of the year by offering business support to its vendors post COVID-19.
Over the next 12 months, construction of the company’s new distribution centre is expected to expand operations and help boost revenue growth.
About the Dicker Data share price
The Dicker Data share price has made a stunning recovery since plummeting to a 52-week low of $3.90 in March. While trading 11% lower than the $8.73 reached in June, the Dicker Data share price has risen 14.6% in year-to-date trading.
These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- Reinvest your Coles dividends in these top ASX shares
- 2 top ASX shares I would buy now for shareholder value and dividend growth
- Why I would buy Coles and this ASX dividend share today
- 3 ASX shares to buy and hold through COVID-19
- 2 high yield ASX dividend shares to buy today
Motley Fool contributor Aaron Teboneras owns shares of Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Dicker Data share price surges following interim results appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3b5464g
Leave a Reply