Quantum Misses on Both Revenue and Earnings

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 9, 2013 at 12:00AM
Other

Quantum (NYSE: QTM) reported earnings on May 8. Here are the numbers you need to know.

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. Non-GAAP earnings per share. GAAP loss per share grew.

Gross margins expanded, operating margins shrank, net margins contracted.

Revenue details
Quantum reported revenue of $140.0 million. The four analysts polled by S&P Capital IQ predicted sales of $146.4 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $160.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.02. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.01 per share. Non-GAAP EPS were -$0.02 for Q4 against $0.00 per share for the prior-year quarter. GAAP EPS were -$0.06 for Q4 versus -$0.05 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.2%, 50 basis points better than the prior-year quarter. Operating margin was -6.2%, 280 basis points worse than the prior-year quarter. Net margin was -10.4%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $143.2 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $605.9 million. The average EPS estimate is $0.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 171 members out of 198 rating the stock outperform, and 27 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Quantum a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quantum is hold, with an average price target of $2.13.

Is Quantum the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.