The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Quantum beat slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and earnings per share dropped significantly.
Margins contracted across the board.
Quantum notched revenue of $173.5 million. The six analysts polled by S&P Capital IQ expected net sales of $171.1 million. Sales were 1.6% lower than the prior-year quarter's $176.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.05. The six earnings estimates compiled by S&P Capital IQ forecast $0.05 per share on the same basis. GAAP EPS of $0.02 for Q3 were 33% lower than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.5%, 40 basis points worse than the prior-year quarter. Operating margin was 4.0%, 250 basis points worse than the prior-year quarter. Net margin was 2.3%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $659.4 million. The average EPS estimate is $0.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 188 rating the stock outperform, and 25 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Quantum a green thumbs-up, and one gives 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 $3.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.