Quantum Goes Red

Quantum (NYSE: QTM  ) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Quantum met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
Quantum recorded revenue of $159.4 million. The six analysts polled by S&P Capital IQ anticipated a top line of $159.7 million on the same basis. GAAP reported sales were 8.1% lower than the prior-year quarter's $173.5 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 six earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were -$0.04 for Q3 compared to $0.02 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 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 0.6%, 340 basis points worse than the prior-year quarter. Net margin was -5.1%, 740 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $150.6 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $598.6 million. The average EPS estimate is -$0.05.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 171 members out of 199 rating the stock outperform, and 28 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 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 outperform, with an average price target of $2.07.

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