DWS 0.00% $1.20 dws limited

speculating re fy12 revenue

  1. DSD
    15,757 Posts.
    Plenty green on screen for a change which means i have time for some idle speculation. We know that starting last year DWS made a concerted effort to increase wk from the banks which have an antiquated 'cobalt system'... whatever that means. DWS pie-chart shows this sector started accelerating late 2011 and we know banks have invested massive amounts renewing their software esp as some had several outages causing chaos for a few days. NAB was esp bad. So lets say NAB will spend 900m over next 30 months on IT. The other banks about half that. That's a total of 2,000m. Lets take a wild guesstimate that DWS get 15% of the wk. Thats 300m. Then govts (state and fed) spend 1,000m over same period. DWS get 10%. That's equates to an extra 400m (300+100) to DWS top line over 30 months= 160m in FY12. How profitatble is IT consulting? My friend says IT programmers earn $45-60/hr. Charged out to client at $150-$400/hr. Not a bad margin... esp as no capex reqd. Assume employees are busy 85% of time and it adds-up pretty smartly. So could we see EPS of 22-26c in FY12? Not inconceivable imo.
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