Quantum (NASDAQ:QMCO) Releases Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• Quantum reported quarterly EPS of $0.25, beating analyst estimates of $0.13 by $0.12; revenue of $89.63 million also topped expectations of $82.30 million.
• Fiscal Q2 revenue rose 43% year over year, with a nearly $100 million backlog and hyperscale demand more than 2.6 times the year-ago level. Quantum ended the quarter debt-free with $67.5 million in cash and restricted cash.
• Management cited component shortages as a constraint on shipments and expects fiscal Q3 revenue of about $91 million, while updating EPS guidance to $0.10–$0.30.

Quantum (NASDAQ:QMCO - Get Free Report) issued its quarterly earnings data on Monday. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.12, FiscalAI reports. The business had revenue of $89.63 million for the quarter, compared to analyst estimates of $82.30 million. Quantum updated its Q3 2027 guidance to 0.100-0.300 EPS.

Here are the key takeaways from Quantum's conference call:

• Fiscal Q2 revenue rose 43% year over year to $89.6 million, above guidance, while adjusted EBITDA reached $11.1 million—more than the company generated in the prior seven fiscal years combined. Quantum also reported $9.8 million in non-GAAP net income and a second consecutive quarter of positive operating cash flow.
• Demand drove record core invoicing and a nearly $100 million backlog, with revenue increasing across all regions and hyperscale demand more than 2.6 times its year-ago level. The company also cited a record ActiveScale order and a major Scalar i7 RAPTOR hyperscaler deployment.
• Component shortages continue to limit shipments, especially for tape media and drives, and management said demand exceeds available supply in some areas. Disk-drive availability improved during the quarter but at higher prices, while the timing of IBM tape-drive production increases remains uncertain.
• Quantum ended the quarter debt-free with $67.5 million in cash and restricted cash, up from $54.6 million in the prior quarter. Operating cash flow was approximately $14 million, though management noted it benefited in part from working-capital timing.
• For fiscal Q3, the company expects revenue of approximately $91 million, plus or minus $2 million, representing about 22% year-over-year growth at the midpoint. Management said results will depend on securing components and shipping orders; adjusted EBITDA is forecast at $9.1 million, below Q2’s $11.1 million, as operating expenses rise with commissions and R&D hiring.

Quantum Stock Up 17.4%

NASDAQ QMCO traded up $2.52 during trading on Monday, hitting $16.99. The stock had a trading volume of 3,128,003 shares, compared to its average volume of 1,135,457. The company has a market capitalization of $669.58 million, a PE ratio of -1.28 and a beta of 3.23. The firm has a 50 day moving average price of $24.06 and a 200 day moving average price of $13.29. Quantum has a twelve month low of $4.19 and a twelve month high of $35.65.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Lake Street Capital set a $29.00 price target on shares of Quantum and gave the company a "buy" rating in a research report on Monday, September 14th. Wall Street Zen upgraded shares of Quantum from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Litchfield Hills Research began coverage on shares of Quantum in a research report on Monday, August 10th. They set a "buy" rating for the company. Cantor Fitzgerald initiated coverage on shares of Quantum in a report on Friday, October 23rd. They issued an "overweight" rating and a $29.00 target price for the company. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Quantum in a research report on Monday, September 21st. Five analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $27.33.

About Quantum

Quantum Corporation NASDAQ: QMCO provides data storage, management and protection solutions for organizations that generate and retain large volumes of unstructured data. Its offerings are designed to help customers store, protect, archive and access information across on-premises, cloud and hybrid environments.

The company's product portfolio has included Scalar tape libraries and LTO tape storage products, DXi deduplication and backup appliances, and software-defined storage solutions such as ActiveScale object storage.

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