The 10-second takeaway
For the quarter ended June 30 (Q2), Datalink met 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. GAAP earnings per share contracted.
Margins dropped across the board.
Datalink chalked up revenue of $148.2 million. The seven analysts polled by S&P Capital IQ looked for sales of $146.9 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $120.0 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 $0.26. The six earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. Non-GAAP EPS of $0.26 for Q2 were 13% higher than the prior-year quarter's $0.23 per share. GAAP EPS of $0.16 for Q2 were 11% lower than the prior-year quarter's $0.18 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 22.7%, 70 basis points worse than the prior-year quarter. Operating margin was 3.4%, 110 basis points worse than the prior-year quarter. Net margin was 2.0%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $145.3 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $590.7 million. The average EPS estimate is $1.02.
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 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 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 $14.00.
Is Datalink the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Datalink to My Watchlist.