Quantum (NASDAQ:QMCO) Announces Earnings Results, Beats Estimates By $0.12 EPS

by · The Cerbat Gem

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, beating analysts’ consensus estimates of $0.13 by $0.12, FiscalAI reports. The firm 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 Performance

NASDAQ QMCO traded up $2.52 during trading hours on Monday, reaching $16.99. 3,128,003 shares of the company’s stock were exchanged, compared to its average volume of 1,135,457. The company has a market capitalization of $669.58 million, a price-to-earnings ratio of -1.28 and a beta of 3.23. The company’s 50-day moving average is $24.06 and its two-hundred day moving average is $13.29. Quantum has a one year low of $4.19 and a one year high of $35.65.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on QMCO. Northland Securities raised shares of Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 price target on the stock in a research report on Tuesday, August 11th. Cantor Fitzgerald initiated coverage on shares of Quantum in a report on Friday, October 23rd. They issued an “overweight” rating and a $29.00 price target for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Quantum in a research report on Monday, September 21st. Wall Street Zen upgraded shares of Quantum from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Finally, Lake Street Capital set a $29.00 price objective on Quantum and gave the stock a “buy” rating in a research note on Monday, September 14th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $27.33.

Check Out Our Latest Report on QMCO

Quantum Company Profile

(Get Free Report)

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.

Read More