IDT stock forecast as shares plunge nearly 8% after FQ1 results

on Dec 9, 2021
  • IDT shares on Wednesday declined by nearly 8%.
  • The company announced its most recent quarterly results Tuesday after markets closed.
  • The company said it still plans to spin-off VoIP unit net2phone in early 2022.

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On Wednesday, shares of US telecommunications company IDT Corp (NYSE:IDT) plummeted by nearly 8% after reporting its most recent quarterly results. The company announced its fiscal first-quarter revenue and earnings Tuesday after markets closed. IDT also said it plans to go ahead with the spin-off of VoIP unit net2phone in early 2022 should the board approve it.

The company posted FQ1 non-GAAP earnings per share of -$0.08. On the other hand, its GAAP EPS came in at -$0.10, while quarterly revenue increased by 7.9% from the same quarter a year ago to $370 million. 

Although IDT shares have pulled back nearly 30% since the 15th of November, the stock is still up more than 265% this year, thus leaving little room for more upward movement.

Is IDT Corp stock undervalued?

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From an investment perspective, IDT shares trade at an attractive P/E ratio of 15.23. In addition, its P/S multiple of just 0.77 suggests the stock could be substantially undervalued.

However, without a clear revenue and earnings forecast for the next few years, it could be too risky to bet on the current value of the stock.

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Therefore, with the stock rallying more than 265% this year, it could be time for profit-takers to swoop in.

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Source – TradingView

Technically, IDT corp shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted to trade below the 100-day moving average pushing it closer to the oversold conditions of the 14-day RSI.

Therefore, investors could target short-term technical rebounds at about $52.47, or higher at $59.13. However, given this year’s rally, IDT shares could fall further towards $40.21 and $33.76.


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