Quantum Corp. (NYSE:QTM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down up 7.98%.
Quantum Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.04 in the quarter versus EPS of $-0.04 in the year-earlier quarter.
Revenue: Rose 5.03% to $147.97 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Quantum Corp. reported adjusted EPS income of $0.04 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $142.36 million.
Quoting Management: “Our June quarter results clearly reflect the benefits of our strong intellectual property portfolio and the actions we’ve taken to drive growth and profit,” said Jon Gacek, president and CEO of Quantum. “With a few exceptions, our revenue performance was generally good and in line with our expectations, and we were particularly pleased by the double-digit growth we generated in midrange DXi and overall StorNext® revenue. We also significantly improved our gross margin rates and operating income, even without the additional royalty revenue resulting from the intellectual property agreement we concluded during the quarter.”
Key Stats (on next page)…
Revenue increased 5.72% from $139.96 million in the previous quarter. EPS increased to $0.04 in the quarter versus EPS of $-0.02 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $0.01. For the current year, the average estimate has moved up from a profit of $0.02 to a profit of $0.05 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)