Quantum (NASDAQ:QMCO) Shares Gap Up on Earnings Beat

Shares of Quantum Corporation (NASDAQ:QMCO) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $11.78, but opened at $14.52. Quantum shares last traded at $18.1030, with a volume of 2,525,431 shares trading hands.

The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.35. The company had revenue of $80.80 million for the quarter, compared to analysts’ expectations of $75.05 million. Quantum has set its Q2 2027 guidance at 0.020-0.220 EPS.

Key Quantum News

Here are the key news stories impacting Quantum this week:

• Positive Sentiment: Quantum exceeded quarterly expectations. Fiscal Q1 2027 adjusted earnings were $0.18 per share, versus the consensus estimate of a $0.17 loss, while revenue reached $80.8 million, above the $75.05 million analyst estimate. The earnings result improved significantly from a $1.58-per-share loss a year earlier. Quantum Corp. Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Revenue growth and balance-sheet improvements were notable. Revenue rose 26% year over year from $64.3 million, adjusted EBITDA was $8.0 million, and the company ended the quarter with $54.6 million in cash and no outstanding debt, compared with $104.3 million of debt a year earlier. Operating expenses also declined year over year. Quantum Reports $80.8 Million Revenue for Fiscal Q1 2027
• Positive Sentiment: Second-quarter guidance was ahead of expectations. Quantum forecast fiscal Q2 2027 revenue of $80 million to $84 million, versus the $75.4 million consensus estimate, and adjusted EPS of $0.02 to $0.22, compared with analyst expectations for a $0.04 loss. Quantum Earnings Report
• Neutral Sentiment: GAAP results remained deeply negative. Quantum reported a $155.3 million GAAP net loss, or $7.06 per share, primarily from one-time charges associated with debt-elimination transactions. This contrasts with the company’s positive non-GAAP results and may create volatility as investors distinguish recurring performance from accounting effects.
• Negative Sentiment: Recent insider activity was unfavorable. Insiders made four open-market sales over the past six months and no purchases, including sales by the CEO, chief revenue officer and chief accounting officer. Institutional positioning was mixed, with 18 investors adding shares and 21 reducing positions.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on QMCO. Weiss Ratings reissued a “sell (d-)” rating on shares of Quantum in a report on Wednesday, June 24th. Needham & Company LLC assumed coverage on shares of Quantum in a research report on Wednesday, June 3rd. They set a “buy” rating on the stock. Lake Street Capital reissued a “buy” rating on shares of Quantum in a research note on Tuesday. Northland Securities downgraded shares of Quantum from an “outperform” rating to a “market perform” rating and set a $13.00 price target on the stock. in a research note on Friday, June 26th. Finally, Litchfield Hills Research began coverage on shares of Quantum in a report on Monday. They issued a “buy” rating for the company. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $16.50.

Hedge Funds Weigh In On Quantum

A number of hedge funds have recently modified their holdings of QMCO. NBC Securities Inc. bought a new position in shares of Quantum during the fourth quarter valued at about $26,000. Bank of America Corp DE increased its holdings in Quantum by 337.5% during the 3rd quarter. Bank of America Corp DE now owns 2,896 shares of the company’s stock valued at $29,000 after purchasing an additional 2,234 shares during the period. BNP Paribas Financial Markets raised its position in Quantum by 322.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,461 shares of the company’s stock valued at $34,000 after purchasing an additional 2,641 shares during the last quarter. Raymond James Financial Inc. bought a new position in Quantum during the 2nd quarter valued at approximately $46,000. Finally, R Squared Ltd purchased a new stake in Quantum in the 1st quarter worth approximately $58,000. Hedge funds and other institutional investors own 63.66% of the company’s stock.

Quantum Trading Up 55.6%

The firm has a market cap of $722.36 million, a PE ratio of -2.28 and a beta of 2.97. The firm has a fifty day simple moving average of $11.98 and a two-hundred day simple moving average of $8.50.

Quantum Company Profile

Quantum Corporation (NASDAQ: QMCO) is a technology company that develops and delivers data management and storage solutions for businesses and organizations worldwide. The company’s product portfolio includes hardware, software and cloud-based offerings designed to address backup, archive, primary storage and long-term retention needs. Quantum’s solutions are geared toward data-intensive environments such as media and entertainment, surveillance, government, education and healthcare, where large volumes of digital content must be reliably stored, managed and accessed.

Quantum’s flagship products include the StorNext® data management platform, which provides high-performance shared file storage and workflow acceleration, and the DXi® series of deduplication appliances, which optimize backup and recovery by reducing storage footprints and data transfer times.