IDT Corporation (NYSE:IDT) reported on Tuesday higher full year 2018 revenue but earnings per share fell by more than half as the company tried to cope with what it called "industry-wide headwinds" that affected revenue from its calling services.
Full-year revenue reached $1.55 billion, compared with $1.5 billion a year ago. Earnings per share reached US$0.17 versus the year-ago figure of $0.35.
Fiscal fourth-quarter revenue for the period ended July 31 reached $392.6 million, slightly below the same period last year of $395 million. But EPS came in at US$0.33, from a loss in the same quarter a year ago of US$$0.41.
Shares surged 25% to $6.63 in morning trading.
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"The resilience in many of our core offerings also collectively increased profitability despite facing industry-wide headwinds for paid voice minutes," said IDT chief executive Shmuel Jonas.
"The need for additional capital to invest in our growth initiatives as they scale and the current low valuation of the company prompted IDT's Board of Directors to discontinue our quarterly dividend and execute a stock buyback program," he added.
IDT's flagship BOSS Revolution calling service, which accounted for over 90% of Retail Communications' revenue in 4Q2018 and full fiscal year 2018, continued to be negatively impacted by persistent, market-wide trends including the proliferation of unlimited calling plans offered by wireless carriers, the company said.
IDT Corporation provides communications and payment services to individuals and businesses. The company is based in Newark, New Jersey.
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Reporting by Rene Pastor, contactable on [email protected]