The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Quantum missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Quantum recorded revenue of $147.3 million. The seven analysts polled by S&P Capital IQ expected to see net sales of $151.1 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $165.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.02. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.02 per share. GAAP EPS were -$0.05 for Q2 against $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 320 basis points worse than the prior-year quarter. Operating margin was -6.8%, 1,070 basis points worse than the prior-year quarter. Net margin was -8.3%, 1,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $162.6 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $610.3 million. The average EPS estimate is -$0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 189 rating the stock outperform, and 26 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Quantum a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quantum is outperform, with an average price target of $1.99.
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