Neutral Tandem Earnings: Here’s Why Investors are Excited Now

Neutral Tandem (NASDAQ:IQNT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 36%.

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Neutral Tandem Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.21 in the quarter as EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 1.41% to $69.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Neutral Tandem reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It beat the average revenue estimate of $65.65 million.

Quoting Management: “Our performance thus far in 2013 is very encouraging,” said Ed Evans, Chief Executive Officer of Inteliquent. “The sale of our data business accomplishes several goals. It is highly accretive and it allows us to focus all of our efforts on the voice business, which we expect will yield further improvements. We are becoming more disciplined in everything that we do.”

Key Stats (on next page)…

Revenue increased 3% from $67.67 million in the previous quarter. EPS increased to $0.21 in the quarter versus EPS of $-2.76 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from $0 to a loss of $0.02. For the current year, the average estimate has moved down from a profit of $0.04 to a loss of $0.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)