Idt Corporation Intrinsic Value Calculation – IDT CORPORATION Reports Earnings Results for Q2 FY2023
March 18, 2023
Earnings Overview
On March 8 2023, IDT CORPORATION ($NYSE:IDT) reported their earnings results for the second quarter of FY2023, which ended on January 31 2023. Compared to the same quarter in the prior fiscal year, the company saw a 95.2% year-over-year rise in total revenue, reaching USD 14.6 million. Unfortunately, their net income dropped 6.9%, amounting to USD 313.9 million.
Transcripts Simplified
My name is Name and I will be your operator for today. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. Joining me today is Howard Jonas, IDT’s Chairman and Chief Executive Officer; and Jerry Fiddle, IDT’s Chief Financial Officer. Following our prepared remarks, we will open up the call for questions.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied in these statements. Such risks include those discussed in IDT’s filings with the SEC. Except as required by law, the company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Now I’d like to turn the call over to Howard Jonas, our Chairman and Chief Executive Officer.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Idt Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 1.29k | 47.64 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Idt Corporation. More…
| Operations | Investing | Financing |
| 53.36 | -30.06 | -24.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Idt Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 500.51 | 297.11 | 7.37 |
Key Ratios Snapshot
Some of the financial key ratios for Idt Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.7% | 202.2% | 4.9% |
| FCF Margin | ROE | ROA |
| 2.3% | 21.8% | 7.9% |
Market Price
At the opening of the stock market, IDT CORPORATION stock was valued at $30.8 per share, and at the close of the market, the stock was valued at $30.7 per share, a decrease of 0.2% from its closing price the day before. This improvement in revenue is attributed to strong performance in their core product lines, including their telecommunications services and digital media offerings. Overall, IDT CORPORATION’s results demonstrate they are continuing to perform strongly in their chosen market segments, and they have achieved their financial goals for the quarter. The company’s future outlook remains optimistic, and they are confident that they will continue to achieve growth and profitability this fiscal year. Live Quote…
Analysis – Idt Corporation Intrinsic Value Calculation
We at GoodWhale have conducted a comprehensive analysis of IDT CORPORATION‘s financials, and have calculated their intrinsic value to be around $24.5. This calculation was based on our proprietary Valuation Line. Currently, IDT CORPORATION’s stock is trading at $30.7, representing an overvaluation of 25.3%. More…
Peers
It operates through the following segments: Telecom Platform Services, Consumer Phone Services, and Business Solutions. The company was founded by Howard Jonas in 1990 and is headquartered in Newark, NJ. The company’s main competitors are Intouch Holdings PCL, Adamant Holding Inc, Bezeq The Israeli Telecommunication Corp Ltd.
– Intouch Holdings PCL ($SET:INTUCH)
InTouch Holdings PCL is a leading provider of telecommunications and digital services in Thailand. The company has a market capitalization of 232.48 billion as of 2022 and a return on equity of 17.4%. InTouch Holdings PCL is a leading provider of mobile phone, fixed line, and broadband services in Thailand. The company also provides a range of other services, including value-added services, content, and applications.
– Adamant Holding Inc ($OTCPK:UCCPF)
Adamant Holding Inc is a holding company that operates through its subsidiaries. It has a market cap of 3.46M as of 2022 and a Return on Equity of -73.95%. The company’s subsidiaries engage in the business of providing services and products related to the financial markets, such as investment banking, asset management, and broker-dealer services.
– Bezeq The Israeli Telecommunication Corp Ltd ($OTCPK:BZQIY)
Bezeq The Israeli Telecommunication Corp Ltd is an Israeli telecommunications company. The company provides a range of fixed-line, mobile, Internet, and pay television services. Bezeq is the largest telecommunications company in Israel. The company has a market cap of 4.85B as of 2022 and a Return on Equity of 71.86%. Bezeq was founded in 1984 and is headquartered in Tel Aviv, Israel.
Summary
Investors may be encouraged by IDT Corporation‘s impressive 95.2% increase in revenue year-over-year during the second quarter of FY2023. However, while the company’s total revenue of USD 14.6 million was impressive, their reported net income of USD 313.9 million showed a 6.9% decrease from the same quarter a year prior. This could indicate that the company is reinvesting profits into its operations, or that expenses have increased due to expansion or cost of goods sold. Investors should keep an eye on the company’s future performance to gauge how effective these maneuvers are in the long-term.
