Datalink Earnings: Here’s Why Shares are Up Now

Datalink Corp. (NASDAQ:DTLK) delivered a profit and beat 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 9.6%.

Datalink Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.31 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Rose 28.41% to $147.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Datalink Corp. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $128.31 million.

Quoting Management: Paul Lidsky, Datalink’s president and CEO, commented, “2012 was another record year for Datalink. We reported record revenues and earnings for the fourth quarter and fiscal year in large part due to our continued focus on our expanded data center product and services offerings.”

Key Stats (on next page)…

Revenue increased 40.59% from $104.77 million in the previous quarter. EPS increased 93.75% from $0.16 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 $0.17 and has not changed. For the current year, the average estimate has moved down from a profit of $0.79 to a profit of $0.78 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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