The 10-second takeaway
For the quarter ended March 31 (Q4), Quantum missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP loss per share improved.
Margins shrank across the board.
Quantum reported revenue of $160.3 million. The seven analysts polled by S&P Capital IQ foresaw sales of $165.0 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $165.1 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 $0.00. The seven earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS were -$0.05 for Q4 compared to -$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 40.7%, 120 basis points worse than the prior-year quarter. Operating margin was -3.6%, 600 basis points worse than the prior-year quarter. Net margin was -6.9%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $160.4 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $678.7 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 rating the stock outperform and 24 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Quantum a green thumbs-up, and three 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 $3.09.
Over the decades, small-cap stocks like Quantum have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Quantum to My Watchlist.
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.