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IDT 2Q18 report +4

The IDT conference call is ongoing, but I think we have the important points:

This also implies that FY guidance will exceed prior targets.  Management says IDT is entering a period of sustainable high growth stronger than any in the company's history.  All segments seeing accelerating interest, as supported by the 61% gross margin, which is set to increase by another percentage point.  Here are a few highlights:

To conclude, this is a great report, and I was negligent in omitting Integrated Device management from my excellence list over the weekend.  I can easily believe that the market will pay $30 or more per IDTI share, but that represents a hybrid PE of 20, which exceeds my acceptable valuation for a manufacturer.  As always, I'll keep an eye out for dips that could be worth buying, but I target at least 20% annualized return without requiring extreme valuation, and I don't see that from the current pricing.

On 10/30/2017 04:13 PM, Esekla wrote:

Integrated Device Technology has reported results for its fiscal second quarter of 2018:

  • EPS of 35 cents beats by a penny
  • on revenue of $204.4M, which beats by $3.4M
Management touted many of the growth drivers that I've already cited.  The conference call starts at 4:30, and we'll see what they have to say about guidance then.