IDT Beats Expectations but Takes a Step Back Anyway

IDT (NYSE: IDT  ) reported earnings on March 12. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted.

Margins dropped across the board.

Revenue details
IDT booked revenue of $365.4 million. The two analysts polled by S&P Capital IQ predicted net sales of $379.2 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $340.9 million.

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

EPS details
Non-GAAP EPS came in at $0.04. The one earnings estimate compiled by S&P Capital IQ predicted $0.02 per share on the same basis. GAAP EPS of $0.12 for Q2 were 7.7% lower than the prior-year quarter's $0.13 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 16.2%, 90 basis points worse than the prior-year quarter. Operating margin was 1.1%, 90 basis points worse than the prior-year quarter. Net margin was 0.7%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $367.2 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.15.

Investor sentiment
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 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give IDT a green thumbs-up, and five 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 $29.50.

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