IDT Corporation

IDT · NYSE

$63.85▲ +1.55%

+$0.98 today

Mkt cap $1.56B
P/E 19.3
Day $62.81 – $64.21

Confidence

High conviction

The read

IDT beats Q2 EPS estimates by 5.6% but shares dip slightly post-report

IDT reported Q2 EPS of $0.94 versus $0.89 consensus, a 5.6% beat; shares fell 0.83% on modest profit-taking despite strong quality metrics and undervaluation.

Confidence note: Reported EPS beat is confirmed; valuation and quality metrics are strong; growth outlook is the main uncertainty.

What happened

Earnings print

IDT reported EPS of $0.94, beating the estimate of $0.89 by 5.6%.

Guidance

No explicit guidance was provided in the report; growth remains below sector average at 4.2% revenue growth TTM.

Price reaction

Shares declined 0.83% to $55.04 on the day following the earnings release, reflecting mild investor caution.

Street narrative

Despite the EPS beat, the market reacted cautiously due to weak growth metrics and sector headwinds; valuation remains attractive with P/E well below sector average.

So what

What changed

IDT beat Q2 EPS estimates by 5.6% with reported EPS of $0.94 versus $0.89.

What the market is pricing

The 0.83% share price decline suggests the market is cautious despite the EPS beat and strong valuation.

Fundamental takeaway

Maintain a neutral bias; monitor next quarter's revenue growth and margin trends for confirmation of operational leverage.

Next 30–90 days

Bull

50%

Sustained operational leverage and improving revenue growth drive margin expansion and share price appreciation.

Next quarterly earnings show revenue growth above 5% YoY.
Operating margin improves beyond 9.1%.

Base

34%

EPS growth remains modest with stable margins; valuation support limits downside but growth remains constrained.

Revenue growth steady around 4%.
Margins stable near current levels.

Bear

16%

Continued weak revenue growth and margin pressure lead to earnings misses and share price decline.

Revenue growth declines below 2%.
Margins compress below 8%.

What to do

If you hold it

Hold unless next-quarter revenue misses guidance materially or customer concentration risk worsens.

If you're watching

Add only if next-quarter guidance is reiterated or raised; avoid if guidance is cut or geopolitical risk escalates.

Keep on your radar

Next quarterly revenue growth rate (due Q3 2026).
Operating margin trends in upcoming earnings.
Sector performance and macroeconomic risks over next 90 days.
Any updated guidance or management commentary on growth segments.