Quantum (NASDAQ:QMCO) Announces Earnings Results, Beats Expectations By $0.13 EPS

Quantum (NASDAQ:QMCO) released its earnings results on Monday. The company reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.13, FiscalAI reports. The firm had revenue of $89.63 million during the quarter, compared to the consensus estimate 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 5.2%

NASDAQ QMCO traded up $0.88 during mid-day trading on Tuesday, hitting $17.87. The stock had a trading volume of 1,164,552 shares, compared to its average volume of 1,131,474. The company has a market cap of $704.22 million, a price-to-earnings ratio of -1.35 and a beta of 3.23. Quantum has a 52-week low of $4.19 and a 52-week high of $35.65. The company has a 50 day simple moving average of $23.95 and a 200 day simple moving average of $13.34.

Trending Headlines about Quantum

Here are the key news stories impacting Quantum this week:

• Positive Sentiment: Fiscal Q2 revenue rose 42.9% year over year to $89.6 million, ahead of analyst estimates, while reported EPS of $0.25 also topped expectations. Gross margin improved, and Quantum cited strong demand and a record order backlog. Quantum Q2 results
• Positive Sentiment: Q3 2027 guidance calls for revenue of $89 million to $93 million, above the $85.5 million consensus, and EPS of $0.10 to $0.30, broadly around or above expectations. Quantum Q2 results and outlook
• Positive Sentiment: Cantor Fitzgerald raised its price target from $29 to $32 and reiterated an “overweight” rating, signaling analyst confidence in the outlook. Price-target update
• Neutral Sentiment: Despite the reported $0.25 per-share earnings figure, Quantum posted a $44.9 million net loss attributable to common shareholders. The earnings figure and the GAAP net loss reflect different measures, so investors may focus on the quality and sustainability of profitability. Q2 financial details
• Negative Sentiment: Company insiders reported open-market sales during the past six months, including sales by the CEO and chief revenue officer. These transactions may weigh on sentiment, although the reported sales were limited in scale. Insider trading details

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Lake Street Capital set a $29.00 price objective on shares of Quantum and gave the stock a “buy” rating in a research report on Monday, September 14th. Cantor Fitzgerald boosted their price objective on shares of Quantum from $29.00 to $32.00 and gave the stock an “overweight” rating in a report on Tuesday. Northland Securities upgraded Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 target price on the stock in a report on Tuesday, August 11th. Litchfield Hills Research initiated coverage on shares of Quantum in a research note on Monday, August 10th. They set a “buy” rating on the stock. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a research note on Monday, September 21st. Five research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Quantum presently has an average rating of “Moderate Buy” and an average price target of $28.33.

Quantum Company Profile

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.