Neutral Tandem, Inc. (IQNT), doing business as Inteliquent, provides interconnection and interoperability solutions worldwide. It offers voice, IP transit, and Ethernet telecommunications services primarily on a wholesale basis. The company announced its intention to declare and pay a special one-time cash dividend in an amount between $4.80 and $5.65 per share, or between approximately $155 – $180 million in aggregate, during the fall of 2012, subject to market and other conditions. IQNT is currently trading at $12 per share making the special dividend yield of 40% or more.
The company earnings were well below estimates on slowing sales to telecom service provider customers. However, Thomas White/Global Capital upgraded NEUTRAL TANDEM INC to FAVORABLE on August 13, 2012. IQNT has an equity summary score of 6.3 out of 10 for a Neutral outlook.
Bottom line: This is a stock to watch going forward as the special dividend is huge (40%) but the company must get its earnings turned around before Fall. The company had $165 million in current assets as of 6/30.