The Data#3 Limited (ASX: DTL) share price is lower in early morning trading despite a positive update on its FY21 result.
At the time of writing, the business technology solutions company’s shares are fetching $5.37 a share, down 4.79%.
How did Data#3 perform for the 2021 financial year?
Investors are pushing Data#3 shares lower during the morning after digesting the company’s latest announcement.
According to its statement, Data#3 advised it expects to report another record full-year result for FY21.
Unconsolidated Net Profit After Tax (NPAT) is estimated to be roughly $36.8 million, reflecting an 8% increase on FY20 ($34.1 million).
This is despite industry-wide product delivery delays impacting the business, in particular during the second half of FY21.
The company has dealt with a global computer chip shortage at a time when demand has spiked earlier than anticipated.
Consequently, Data#3 has encountered a larger product backlog order at year’s end. This is forecast to lead to a profit of around $3 million which will be realised in FY22.
Traditionally, the company sees demand for its devices jump during the fourth quarter of each year. However, supply constraints for a number of products are predicted to continue in the new financial year.
Data#3 revealed its audited full-year results for the 2021 financial year will be released on 19 August. In addition, management noted it will maintain its dividend payout ratio to shareholders as in previous years.
About the Data#3 share price
During the last 12 months, Data#3 shares have climbed around 10% higher but remain flat for 2021.
The company’s share price hit a 52-week high of $7.30 last October before plummeting on its Annual General Meeting (AGM) release. Since then, Data#3 shares have moved in circles, currently in the middle of its 52-week range.
At today’s price, Data#3 has a market capitalisation of roughly $868 million, with 153 million shares on its registry.
The post Why the Data#3 (ASX:DTL) share price is down 5% this morning appeared first on The Motley Fool Australia.
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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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