The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Datalink beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins expanded, net margins dropped.
Datalink tallied revenue of $147.3 million. The five analysts polled by S&P Capital IQ predicted revenue of $129.0 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $114.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The five earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. Non-GAAP EPS of $0.31 for Q4 were 29% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.18 for Q4 were 13% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.2%, 130 basis points worse than the prior-year quarter. Operating margin was 3.9%, 10 basis points better than the prior-year quarter. Net margin was 2.2%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $133.1 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $573.1 million. The average EPS estimate is $0.98.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 101 members out of 104 rating the stock outperform, and three members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Datalink a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Datalink is buy, with an average price target of $10.67.
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