IDT Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Mar 8, 2013 at 12:00AM
Other

IDT (NYSE: IDT) reported earnings on March 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q2), IDT beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded.

Gross margins grew, operating margins grew, net margins were steady.

Revenue details
IDT chalked up revenue of $411.7 million. The two analysts polled by S&P Capital IQ anticipated revenue of $399.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $365.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The two earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. Non-GAAP EPS of $0.41 for Q2 were much higher than the prior-year quarter's $0.04 per share. GAAP EPS of $0.13 for Q2 were 8.3% higher than the prior-year quarter's $0.12 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.3%, 10 basis points better than the prior-year quarter. Operating margin was 1.3%, 70 basis points better than the prior-year quarter. Net margin was 0.7%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $401.6 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $1.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 103 members out of 130 rating the stock outperform, and 27 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give IDT a green thumbs-up, and four 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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