Hold Data#3 despite downgrade: analysts
It isn’t very often that profit downgrades are interpreted as buying opportunities, but in the case of Data 3 that may just be the case.
It isn’t very often that profit downgrades are interpreted as buying opportunities, but in the case of Data 3 Limited that may just be the case. The IT services provider indicated in May it wouldn’t achieve 2013-14 guidance, but management said conditions were too unpredictable to provide accurate revised guidance apart from indicating second half profit would exceed the $2.6 million achieved in the six months to December 31, 2013.
After delivering its interim result in February, Data 3 cautiously stuck by prior full-year guidance of achieving a similar result to 2012-13 which featured a net profit of $12.1 million, representing earnings per share of 7.8¢. However, after recording a first half net profit of $2.5 million representing earnings per share of 1.6¢ the company required a stellar second half in order to meet its original guidance.
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