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

Shares of Quantum Corporation (NASDAQ:QMCO) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $16.99, but opened at $19.00. Quantum shares last traded at $17.9150, with a volume of 1,164,552 shares changing hands.

The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.13. The business had revenue of $89.63 million during the quarter, compared to analysts’ expectations of $82.30 million. Quantum has set its Q3 2027 guidance at 0.100-0.300 EPS.

Key Headlines Impacting 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 Analyst Weigh In

QMCO has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a research note on Monday, September 21st. Northland Securities raised Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 target price on the stock in a research note on Tuesday, August 11th. Litchfield Hills Research began coverage on Quantum in a report on Monday, August 10th. They set a “buy” rating on the stock. Wall Street Zen raised 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 report on Monday, September 14th. 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 data from MarketBeat.com, Quantum presently has a consensus rating of “Moderate Buy” and an average target price of $28.33.

Institutional Trading of Quantum

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Squarepoint Ops LLC purchased a new stake in shares of Quantum in the 2nd quarter worth about $372,000. Susquehanna Fundamental Investments LLC purchased a new position in Quantum in the 2nd quarter worth approximately $381,000. Man Group plc bought a new position in Quantum in the 2nd quarter valued at approximately $755,000. Sona Asset Management US LLC bought a new position in Quantum in the 1st quarter valued at approximately $333,000. Finally, State Street Corp boosted its stake in Quantum by 4.3% during the 2nd quarter. State Street Corp now owns 75,914 shares of the company’s stock valued at $835,000 after purchasing an additional 3,100 shares during the last quarter. 63.66% of the stock is owned by hedge funds and other institutional investors.

Quantum Trading Up 4.8%

The firm has a market capitalization of $701.50 million, a PE ratio of -1.35 and a beta of 3.23. The firm has a 50 day simple moving average of $23.95 and a 200 day simple moving average of $13.34.

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.