Data Storage (NASDAQ:DTST) Posts Earnings Results, Beats Estimates By $0.14 EPS

by · The Cerbat Gem

Data Storage (NASDAQ:DTST – Get Free Report) announced its quarterly earnings data on Friday. The company reported ($0.20) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.14, FiscalAI reports. Data Storage had a net margin of 81.52% and a negative return on equity of 2.84%. The firm had revenue of $0.35 million during the quarter, compared to analysts’ expectations of $0.40 million.

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

  • Data Storage said it is pivoting from the 2025 sale of CloudFirst into a new strategy centered on Sovereign AI Solutions, which it believes could become a new infrastructure category for regulated enterprises needing AI continuity, recovery, validation, and compliance.
  • The company emphasized a strong balance sheet, including no long-term debt, about $9.7 million in cash and marketable securities at quarter-end, and a sharply reduced share count after the tender offer that cut outstanding shares by roughly 72%.
  • Management said the new AI initiative will likely be built in stages, with near-term spending focused on planning and architecture, while larger capital expenditures and software development would follow later if the project advances.
  • The continuing Nexxis business showed solid operating momentum in Q1, with sales up 10.9% year over year, gross profit up 32.1%, and gross margin expanding to 53.7%.
  • Despite higher gross profit, SG&A jumped 71.8% to $1.5 million, driven largely by non-cash stock compensation and higher professional fees, which contributed to a $631,000 net loss for the quarter.

Data Storage Trading Down 6.9%

NASDAQ DTST traded down $0.30 on Friday, hitting $4.06. 38,467 shares of the stock were exchanged, compared to its average volume of 37,033. Data Storage has a fifty-two week low of $3.25 and a fifty-two week high of $5.44. The company has a 50-day moving average price of $4.01 and a 200-day moving average price of $4.34.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in DTST. Dimensional Fund Advisors LP grew its holdings in 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 in the last quarter. Elevation Point Wealth Partners LLC acquired a new position in Data Storage during the 3rd quarter worth approximately $186,000. Renaissance Technologies LLC lifted its position in shares of Data Storage by 54.8% during the 4th quarter. Renaissance Technologies LLC now owns 136,100 shares of the company’s stock worth $697,000 after buying an additional 48,200 shares during the last quarter. Rothschild Wealth LLC purchased a new stake in shares of Data Storage during the 4th quarter worth approximately $205,000. Finally, Zacks Investment Management purchased a new stake in shares of Data Storage during the 4th quarter worth approximately $83,000. Institutional investors and hedge funds own 11.56% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings upgraded shares of Data Storage from a “sell (d)” rating to a “hold (c)” rating in a report on Monday, April 6th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce”.

Get Our Latest Report on Data Storage

About Data Storage

(Get Free Report)

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.

Further Reading