Here’s why ASX tech share Dicker Data is leaping higher today

Investors are bidding up the Dicker Data share price today after the ASX tech stock released its unaudited half-year results.

| More on:
Man pointing at a blue rising share price graph.

Image source: Getty Images

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

ASX tech share Dicker Data Ltd (ASX: DDR) is smashing the benchmark returns today.

Shares in the wholesale computer hardware and software distributor closed yesterday trading for $8.02. In early trade shares were changing hands for $8.57 apiece, putting the stock up 6.9%.

At the time of writing, shares have retraced some to $8.41 apiece, which sees the Dicker Data share price up 4.9%.

The All Ordinaries Index (ASX: XAO) is up 0.1% at this same time.

Here’s what’s piquing investor interest in this ASX tech share on Friday.

Dicker Data share price soars on profit boost

Investors are bidding up the Dicker Data share price today after the company released its unaudited half-year results for the six months ending 30 June (H1 2023).

Among the highlights, the ASX tech share reported:

  • Revenue of $1.60 billion, up 9.4% from H1 2022
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $71 million, up 16.4% year on year
  • Net profit before tax of $54 million, up 8.0% from H1 2022

What else did the ASX tech share report?

Dicker Data noted that part of the boost in half-year revenue was driven by the full six-month contribution from its Hills acquisition, completed on 1 May 2022. Organic growth from existing and new vendors drove the rest of the revenue increase.

The business received some tailwinds from an easing of the past three years of supply chain disruptions and chip shortages. Management noted, “H123 exhibited the strongest signals yet of a normalising supply-side market.”

While the six months saw a decline in demand for personal computing devices, the company said its diverse business model enabled it “to capitalise on the demand for networking and storage products”.

The ASX tech share also noted an increase in its software business and growth in its access and surveillance business.

Looking ahead, the company said:

Cybersecurity continues to be a key focus for all sectors in 2023, with intelligent solutions such as Zero Trust and SASE enabling secure, compliant, and protected technology environments…

We are anticipating a high level of growth in the adoption of automation, machine learning and data capture and analysis tools as businesses and governments prioritise efficiency and productivity within their operations.

Dicker Data will release its audited interim report for FY23 on 30 August.

How has this ASX tech share been tracking?

The Dicker Data share price is down 28% over the past 12 months.

Longer-term, the ASX tech share is up 173% over five years.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

a bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Earnings Results

Boral share price bolts 7% higher on ‘clear improvement’ in FY23

Boral is building its way back to its former glory under the guidance of its new leader.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Earnings Results

AGL shares slide after huge statutory loss overshadows underlying growth

AGL's FY 2023 results were a bit of a mixed bag.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Earnings Results

QBE share price sinks as catastrophe claims take a bite out of revenues

ASX 200 investors are bidding down the QBE share price following the release of the insurance company’s half-year financial results.

Read more »

Earnings Results

AMP share price sinks 6% as half-year profits slump

Pockets of AMP's business are delivering underlying growth, but will it be enough to impress shareholders?

Read more »

A woman is excited as she reads the latest rumour on her phone.
Earnings Results

Cettire share price jumps 11% on dazzling FY23 growth

Consumer spending weakness hasn't been able to stop Cettire's rapid growth.

Read more »

a surprised investor reading about an asx share price in a newspaper
Earnings Results

AGL share price on watch amid $1.3b loss

AGL has released its FY 2023 results. How did it do?

Read more »

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.
Earnings Results

Suncorp share price slides despite 69% full-year profit boost

Suncorp’s group profits soared 69% year on year to $1.15 billion.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Earnings Results

CBA shares charge higher on ‘earnings beat’

Here's what analysts are saying about the CBA result.

Read more »