Data Storage (NASDAQ:DTST) Issues Quarterly Earnings Results, Misses Expectations By $0.24 EPS

Data Storage (NASDAQ:DTST) posted its quarterly earnings results on Friday. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.29) by ($0.24), Zacks reports. The business had revenue of $0.36 million for the quarter, compared to the consensus estimate of $0.40 million.

Here are the key takeaways from Data Storage’s conference call:

• Nexxis revenue from continuing operations rose 9.3% year over year to $359,000, while gross profit increased 21.9% to $168,000 and gross margin improved to 47% from 42.1%, supported by new customers, higher existing-customer spending, favorable mix, and operating leverage.
• Data Storage ended the quarter with approximately $9.3 million in cash and marketable securities and no long-term debt, providing flexibility to pursue acquisitions, strategic investments, and internally developed initiatives.
• The company’s net loss attributable to common shareholders widened to $1.2 million from $732,000, as SG&A rose 33.2% to $1.5 million, driven primarily by higher non-cash stock compensation and professional fees.
• Management is evaluating more than 100 potential opportunities across cybersecurity, AI infrastructure, telecommunications, software, and related markets, but remains cautious about unrealistic valuations and is not yet ready to announce a transaction.
• Management said it would like to sign a nonbinding letter of intent within 45–60 days and close an acquisition by late fourth quarter 2026 or the first quarter of 2027, likely using a combination of cash, stock, and earn-out structures to limit risk and align seller incentives.

Data Storage Trading Down 14.5%

Shares of NASDAQ DTST traded down $0.52 during mid-day trading on Friday, reaching $3.06. 87,873 shares of the company’s stock were exchanged, compared to its average volume of 13,159. The firm has a market capitalization of $7.15 million, a price-to-earnings ratio of -9.27 and a beta of 1.15. Data Storage has a twelve month low of $2.85 and a twelve month high of $5.15. The business has a fifty day simple moving average of $3.32 and a 200 day simple moving average of $3.81.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a “hold (c)” rating on shares of Data Storage in a research note on Thursday, July 2nd. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Data Storage has an average rating of “Hold”.

Insider Transactions at Data Storage

In other Data Storage news, CEO Charles M. Piluso sold 32,610 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $3.82, for a total value of $124,570.20. Following the completion of the transaction, the chief executive officer directly owned 223,074 shares in the company, valued at $852,142.68. This trade represents a 12.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 86,958 shares of company stock worth $333,310 in the last 90 days. Corporate insiders own 21.20% of the company’s stock.

Hedge Funds Weigh In On Data Storage

A number of institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its stake in shares of Data Storage by 15.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 37,574 shares of the company’s stock worth $162,000 after acquiring an additional 4,920 shares during the period. Elevation Point Wealth Partners LLC acquired a new stake in Data Storage during the 3rd quarter valued at $186,000. Renaissance Technologies LLC boosted its position in Data Storage by 54.8% during the fourth quarter. Renaissance Technologies LLC now owns 136,100 shares of the company’s stock worth $697,000 after purchasing an additional 48,200 shares during the period. Rothschild Wealth LLC bought a new position in Data Storage during the fourth quarter worth $205,000. Finally, Zacks Investment Management acquired a new position in shares of Data Storage in the fourth quarter valued at $83,000. Institutional investors and hedge funds own 11.56% of the company’s stock.

Data Storage Company Profile

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level.