The 10-second takeaway
For the quarter ended July 31 (Q4), IDT met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins increased.
IDT recorded revenue of $384.9 million. The two analysts polled by S&P Capital IQ foresaw a top line of $383.5 million on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $407.5 million.
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 $1.42. The one earnings estimate compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $1.42 for Q4 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included $0.16 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.8%, 140 basis points worse than the prior-year quarter. Operating margin was 0.7%, 130 basis points better than the prior-year quarter. Net margin was 9.7%, 970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $391.0 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $0.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 109 members out of 136 rating the stock outperform, and 27 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give IDT a green thumbs-up, and three 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 $18.00.
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