IDT (NYSE:IDT) Shares Gap Up on Earnings Beat

Key Points

• IDT shares gapped up after the company beat fiscal third-quarter expectations, with earnings of $0.94 per share versus $0.89 expected and revenue of $315.7 million versus $308.0 million forecast.
• The company also reported record quarterly gross profit of $122.5 million and raised its FY 2026 Adjusted EBITDA guidance to $150 million-$152 million, signaling improved profitability and stronger outlook.
• IDT declared a quarterly dividend of $0.07 per share, payable June 18, though investors are still watching cash flow after operating cash flow fell year over year.

IDT Corporation (NYSE:IDT - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $54.03, but opened at $56.99. IDT shares last traded at $55.90, with a volume of 19,580 shares traded.

The utilities provider reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $0.05. IDT had a return on equity of 25.97% and a net margin of 6.49%.The company had revenue of $315.71 million for the quarter, compared to the consensus estimate of $308.00 million.

IDT Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Tuesday, June 9th will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, June 9th. IDT's payout ratio is presently 8.59%.

IDT News Roundup

Here are the key news stories impacting IDT this week:

• Positive Sentiment: IDT beat quarterly expectations, reporting EPS of $0.94 versus the $0.89 consensus and revenue of $315.7 million versus $308.0 million expected, reinforcing the earnings momentum behind the stock. IDT earnings report
• Positive Sentiment: The company posted record consolidated quarterly gross profit of $122.5 million and improved gross margin to 38.8%, suggesting stronger profitability and operating leverage. IDT Q3 2026 results
• Positive Sentiment: Management raised FY 2026 Adjusted EBITDA guidance to $150 million-$152 million from $147 million-$149 million, signaling confidence in continued execution. Guidance raise
• Positive Sentiment: Growth was broad-based in the key higher-margin segments: NRS operating income rose 33%, Fintech 29%, and net2phone 76%, which supports the view that IDT is diversifying away from lower-growth legacy communications. Earnings call transcript
• Positive Sentiment: The board declared a quarterly dividend of $0.07 per share, which is a modest shareholder-return positive and may help support investor sentiment. Dividend announcement
• Neutral Sentiment: Zacks highlighted IDT as a small cap with recurring revenue and a strong balance sheet, which may support the investment case but is unlikely to be a major near-term stock driver. Zacks article
• Negative Sentiment: Operating cash flow fell sharply year over year, though management said the decline was due to working-capital timing; investors may still watch cash generation closely. Cash flow detail
• Negative Sentiment: Insider trading data showed no purchases and nine sales over the past six months, which can be a mild headwind for sentiment despite the strong fundamentals. Insider trading data

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Weiss Ratings reiterated a "hold (c+)" rating on shares of IDT in a research note on Friday, March 27th. Wall Street Zen lowered shares of IDT from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 3rd. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the stock has an average rating of "Hold".

Insider Buying and Selling

In other news, CFO Marcelo Fischer sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $50.50, for a total value of $252,500.00. Following the completion of the sale, the chief financial officer directly owned 56,147 shares in the company, valued at $2,835,423.50. This represents a 8.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Menachem Ash sold 20,000 shares of the company's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $51.00, for a total value of $1,020,000.00. Following the completion of the sale, the executive vice president owned 32,243 shares of the company's stock, valued at approximately $1,644,393. The trade was a 38.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 25.41% of the stock is owned by corporate insiders.

Institutional Trading of IDT

Several institutional investors and hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in IDT by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,156 shares of the utilities provider's stock worth $470,000 after purchasing an additional 381 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of IDT by 0.9% in the 1st quarter. Bank of New York Mellon Corp now owns 117,607 shares of the utilities provider's stock valued at $5,774,000 after buying an additional 1,088 shares in the last quarter. Tudor Investment Corp ET AL grew its holdings in shares of IDT by 9.1% during the fourth quarter. Tudor Investment Corp ET AL now owns 16,274 shares of the utilities provider's stock worth $833,000 after purchasing an additional 1,364 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in IDT during the third quarter worth approximately $96,000. Finally, Gabelli Funds LLC purchased a new stake in IDT in the 2nd quarter valued at $239,000. 59.34% of the stock is currently owned by hedge funds and other institutional investors.

IDT Price Performance

The firm's 50 day moving average price is $51.46 and its two-hundred day moving average price is $50.50. The firm has a market cap of $1.38 billion, a price-to-earnings ratio of 16.96 and a beta of 0.68.

IDT Company Profile

IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories.

Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling.

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