Datalink Corp (DTLK) Misses Q4 EPS by 2c

Datalink Corp (NASDAQ: DTLK) reported Q4 EPS of $0.20, $0.02 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $208.8 million versus the consensus estimate of $200.86 million.

For the year ending December 31, 2016, Datalink expects to grow revenues between 4% and 6%, or about 2% and 3% higher than the current industry IT spending estimates of between 2% and 3%. These estimates exclude approximately $22 million of low margin fulfillment revenues in 2015 that the company will not pursue in 2016. The decrease in these fulfillment revenues are not expected to have an impact on our earnings as associated costs will also be eliminated. The company will continue to focus on growing Datalink-delivered professional services revenues at a much faster pace by delivering more value added consulting services such as data center relocation, cloud consulting and security assessments. The company expects this continued focus on professional services growth will in turn result in improved earnings.

For earnings history and earnings-related data on Datalink Corp (DTLK) click here.

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