The 10-second takeaway
For the quarter ended March 31 (Q1), Datalink met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Datalink logged revenue of $133.6 million. The seven analysts polled by S&P Capital IQ expected to see sales of $132.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $119.1 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 $0.18. The six earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. Non-GAAP EPS of $0.18 for Q1 were 5.9% higher than the prior-year quarter's $0.17 per share. GAAP EPS of $0.06 for Q1 were 50% lower than the prior-year quarter's $0.12 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 22.3%, 60 basis points worse than the prior-year quarter. Operating margin was 1.5%, 150 basis points worse than the prior-year quarter. Net margin was 0.8%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $145.9 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $589.7 million. The average EPS estimate is $1.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 102 rating the stock outperform, and three members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Datalink a green thumbs-up, and 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 $13.10.
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