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Is DecisionPoint (DPSI) a Smart Bet After Its Q3 Results?
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DecisionPoint (DPSI - Free Report) is a stock that investors may consider adding to their portfolio to make some gains from its upside potential amid the ongoing volatility.
Record inflation, a hawkish Fed policy, lingering supply chain issues and uncertainty prevailing over global macroeconomic conditions have raised investors’ apprehension. The abovementioned factors are taking a toll on major U.S. indices. Year to date, the S&P 500 has declined 18.1%.
The company recently reported strong third-quarter 2022 results. DPSI reported earnings of 16 cents per share, which soared 61.7% year over year and beat the Zacks Consensus Estimate of 2 cents per share. Revenues increased 41.1% year over year to $25.7 million and topped the consensus mark by 22.7%.
The top line was driven by broad-based strength across both products and services, with 22% growth in Service revenues. Also, the company’s ability to procure products from OEMs and distributors led to customers placing orders with longer lead times. This resulted in a backlog worth $29 million at the end of the quarter.
Synergies from recent acquisitions are likely to drive DecisionPoint’s performance. The company concluded two buyouts — Advanced Mobile Group and Boston Technologies — earlier in 2022. These acquisitions boost the company’s position in the lucrative transportation and direct store delivery verticals.
The company recently completed the re-branding of ExtenData Solutions into DecisionPoint Systems. ExtenData is a leading provider of enterprise mobility and wireless applications solutions that helps its customers to improve operational efficiency and productivity. The company was acquired by DecisionPoint Systems in December 2020.
The acquisition has helped DecisionPoint to improve its regional presence across the Rocky Mountain and Southwest regions of the United States and expand its professional services team.
However, weakness prevailing over global macroeconomic conditions and rising inflation could affect the company's performance in the near term.
Raised Outlook
For 2022, the company expects revenues to be between $90 million and $93 million compared with the earlier guidance of $87 million and $90 million, suggesting growth of 36-41% year over year. Adjusted EBITDA is projected to be between $6.5 and $7 million compared with the earlier guidance of $4.6 and $5 million.
A Look at Estimates
DecisionPoint has an impressive earnings surprise history. The company outpaced estimates in three out of the trailing four quarters, delivering an average earnings surprise of 151%.
The stock has gained 30.4% in the past year against the industry’s decline of 31.2%. It is still trading 54% below its 52-week high of $12.98 on May 18, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings of 24 cents per share suggests growth of approximately 300% from the year-ago period’s levels. It has remained unchanged in the past 30 days.
For 2023, the consensus mark for earnings is pegged at 29 cents per share, indicating a year-over-year increase of 20.8%.
For 2022 and 2023, the company’s revenue estimates are pegged at $88.5 million and $94 million, suggesting year-over-year growth of 34.2% and 6.2%, respectively.
DecisionPoint has the favorable combination of a Growth Score of A and a Zacks Rank #2. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Blackbaud (BLKB - Free Report) and Jabil (JBL - Free Report) . Arista Networks and Jabil currently sport a Zacks Rank #1 while Blackbaud carries a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.35 per share, up 7.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have decreased 1.4% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.59 per share, up 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have declined 29% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 4.8% in the past year.
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Is DecisionPoint (DPSI) a Smart Bet After Its Q3 Results?
DecisionPoint (DPSI - Free Report) is a stock that investors may consider adding to their portfolio to make some gains from its upside potential amid the ongoing volatility.
Record inflation, a hawkish Fed policy, lingering supply chain issues and uncertainty prevailing over global macroeconomic conditions have raised investors’ apprehension. The abovementioned factors are taking a toll on major U.S. indices. Year to date, the S&P 500 has declined 18.1%.
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company recently reported strong third-quarter 2022 results. DPSI reported earnings of 16 cents per share, which soared 61.7% year over year and beat the Zacks Consensus Estimate of 2 cents per share. Revenues increased 41.1% year over year to $25.7 million and topped the consensus mark by 22.7%.
The top line was driven by broad-based strength across both products and services, with 22% growth in Service revenues. Also, the company’s ability to procure products from OEMs and distributors led to customers placing orders with longer lead times. This resulted in a backlog worth $29 million at the end of the quarter.
Synergies from recent acquisitions are likely to drive DecisionPoint’s performance. The company concluded two buyouts — Advanced Mobile Group and Boston Technologies — earlier in 2022. These acquisitions boost the company’s position in the lucrative transportation and direct store delivery verticals.
The company recently completed the re-branding of ExtenData Solutions into DecisionPoint Systems. ExtenData is a leading provider of enterprise mobility and wireless applications solutions that helps its customers to improve operational efficiency and productivity. The company was acquired by DecisionPoint Systems in December 2020.
The acquisition has helped DecisionPoint to improve its regional presence across the Rocky Mountain and Southwest regions of the United States and expand its professional services team.
However, weakness prevailing over global macroeconomic conditions and rising inflation could affect the company's performance in the near term.
Raised Outlook
For 2022, the company expects revenues to be between $90 million and $93 million compared with the earlier guidance of $87 million and $90 million, suggesting growth of 36-41% year over year. Adjusted EBITDA is projected to be between $6.5 and $7 million compared with the earlier guidance of $4.6 and $5 million.
A Look at Estimates
DecisionPoint has an impressive earnings surprise history. The company outpaced estimates in three out of the trailing four quarters, delivering an average earnings surprise of 151%.
The stock has gained 30.4% in the past year against the industry’s decline of 31.2%. It is still trading 54% below its 52-week high of $12.98 on May 18, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2022 earnings of 24 cents per share suggests growth of approximately 300% from the year-ago period’s levels. It has remained unchanged in the past 30 days.
For 2023, the consensus mark for earnings is pegged at 29 cents per share, indicating a year-over-year increase of 20.8%.
For 2022 and 2023, the company’s revenue estimates are pegged at $88.5 million and $94 million, suggesting year-over-year growth of 34.2% and 6.2%, respectively.
DecisionPoint has the favorable combination of a Growth Score of A and a Zacks Rank #2. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Blackbaud (BLKB - Free Report) and Jabil (JBL - Free Report) . Arista Networks and Jabil currently sport a Zacks Rank #1 while Blackbaud carries a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.35 per share, up 7.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have decreased 1.4% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.59 per share, up 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have declined 29% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 4.8% in the past year.