IDT Beats Analyst Estimates on EPS

IDT (NYSE: IDT  ) reported earnings on June 6. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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.

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