Our opinion on the current state of DATATEC(DTC)Here is the text with paragraphs added:
Datatec (DTC) is an international IT and telecommunications company operating in more than fifty countries. It operates in the United States, South America, Europe, Africa, the Middle East, and Asia. Its business is divided into three main divisions - technology distribution through Westcon International, integration and managed services through Logicalis, and consulting and financial services through Datatec Financial Services and Analysys Mason. The CEO, Jens Montanana, is a 10% shareholder.
In its results for the year to 29th February 2024, the company reported revenue up 6.1% and headline earnings per share (HEPS) of 14.2c (US) compared with a loss of 9.3c in the previous period. The company said, "Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well, however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance."
In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would be between 58.7% and 74.6% higher than in the previous period. The company said, "Westcon continued its profit growth trajectory and Logicalis International strongly increased profitability."
Technically, the share fell during the COVID-19 pandemic to around 2067c but then rallied to around 4119c. Then the Ukraine crisis took the share down to 3100c on 8th March 2022, but since then, although volatile, it has been recovering. We believe it will continue to perform, especially as the use of artificial intelligence (AI) becomes more widespread.
