The 10-second takeaway
For the quarter ended Oct. 31 (Q1), IDT beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
IDT booked revenue of $400.6 million. The two analysts polled by S&P Capital IQ predicted a top line of $391.0 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $376.8 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 $0.45. The one earnings estimate compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS were $0.16 for Q1 versus -$0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.3%, 110 basis points better than the prior-year quarter. Operating margin was 1.4%, 130 basis points better than the prior-year quarter. Net margin was 0.9%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $401.7 million. On the bottom line, the average EPS estimate is $0.15.
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 105 members out of 131 rating the stock outperform, and 26 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 $16.00.
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