Why the Data#3 (ASX:DTL) share price just stormed to a record high

The Data#3 Limited (ASX:DTL) share price has been on fire in 2020 and just hit a record high. Here's why it is up 74% since the start of the year…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Data#3 Limited (ASX: DTL) share price has continued its positive run and charged higher again on Wednesday.

At one stage the information technology services and solutions provider's shares stormed as much as 6% higher to a record high of $6.63.

When the Data#3 share price reached that level, it meant it was up a remarkable 74.5% since the start of the year.

cloud shares

Why is the Data#3 share price at a record high?

Investors have been fighting to get hold of the company's shares this year following a very strong performance in FY 2020 despite the pandemic.

For the 12 months ended 30 June 2020, Data#3 reported a 14.9% increase in revenue to $1.6 billion and a 30.5% lift in net profit after tax to $23.6 million.

A key driver of its growth was revenue from its public cloud business. It reported revenue of $581 million, up over 60% year on year. This means that over one-third of its revenue is now coming from this business.

The company's Chief Executive Officer and Managing Director, Laurence Baynham, commented: "We are delighted with the performance of the consolidated Data#3 business, which delivered another record result in what has been an extraordinary year. The result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and the growth in public cloud was a particular highlight."

What about the future?

While the company wasn't able to provide guidance for the year ahead because of the pandemic, management appears very confident on its future.

Mr Baynham explained: "Our expectation is that technology will play a major role in Australia's economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities."

Judging by its share price performance in 2020, it appears as though investors are equally confident that this will be the case.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Record Highs

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Technology Shares

Guess which ASX 200 tech stock has rallied 30% in 2023 and just hit an all-time high

Just how rich has this tech stock made ASX investors?

Read more »

Three businesspeople leap high with the CBD in the background.
Record Highs

3 ASX All Ords shares smashing new, all-time highs today

These shares are hitting record highs this Wednesday...

Read more »

ETF spelt out on cube blocks with rising arrows.
ETFs

This ASX ETF just hit an all-time high. Is it too late to buy?

This ETF clocked a new all-time high.

Read more »

Team celebrating corporate success screaming with joy.
Bank Shares

CBA share price hits new record high again on Tuesday

CBA has benefited from a series of interest rate hikes over the past half year.

Read more »

a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.
Record Highs

BHP share price hits milestone $50 mark on Monday

BHP shares hit a new record high today...

Read more »

A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face
Record Highs

Why did the BHP share price just hit a new, all-time high?

Here's why the BHP share price just cracked a new record high.

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today
Record Highs

Why is the Mineral Resources share price rocking an all-time high today?

We take a look at how the Mineral Resources share price is faring today.

Read more »

A statuesque woman throws earth in the air in front of a rocky outcrop.
Record Highs

Why did the Mineral Resources share price just smash its all-time high?

A restructure earlier this year separating out its lithium activities seemed to spur rumours the ASX 200 giant was considering…

Read more »