Datalink Earnings: Here’s Why Investors are Excited Now

Datalink Corp. (NASDAQ:DTLK) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.32%.

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Datalink Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.88% to $0.18 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 12.18% to $133.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Datalink Corp. reported adjusted EPS income of $0.18 per share. By that measure, the company met the mean analyst estimate of $0.18. It beat the average revenue estimate of $132.06 million.

Quoting Management: “We had a strong first-quarter performance with a sales cadence that kept pace with the fourth quarter, and significant increases in key strategic areas of the business,” said Paul Lidsky, Datalink’s president and CEO. “We continue to realize the benefits of our portfolio diversification strategy, our focus on converging data center infrastructure, and our ability to provide a complete suite of products and services that simplifies sourcing, implementation and support for enterprises that are modernizing their data center technology.”

Key Stats (on next page)…

Revenue decreased 9.3% from $147.3 million in the previous quarter. EPS decreased 41.94% from $0.31 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved up from a profit of $0.94 to a profit of $0.98 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)