The 10-second takeaway
For the quarter ended April 30 (Q3), IDT met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
IDT notched revenue of $397.2 million. The two analysts polled by S&P Capital IQ predicted sales of $402.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The one earnings estimate compiled by S&P Capital IQ anticipated $0.29 per share. Non-GAAP EPS of $0.31 for Q3 were 121% higher than the prior-year quarter's $0.14 per share. GAAP EPS of $0.39 for Q3 were 179% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.6%, 80 basis points better than the prior-year quarter. Operating margin was 3.7%, 280 basis points better than the prior-year quarter. Net margin was 2.2%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $404.5 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $1.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 106 members out of 133 rating the stock outperform, and 27 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give IDT a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IDT is buy, with an average price target of $15.00.
Is IDT the best telecom bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average telecom company. Click here for instant access to this free report.
- Add IDT to My Watchlist.