Quantum Sees Q2 EPS $(0.04) +/- $0.02 Vs $(0.01) Est.; Revenue $80M +/- $3M Vs $99.53M Est.; FY24 EPS $(0.06) +/- $0.02 Vs $0.03 Est.; Revenue $360M +/- $10M Vs $412.8M Est.
Portfolio Pulse from Happy Mohamed
Quantum Corporation has revised its Q2 and FY24 guidance downwards. For Q2, it now expects revenues of $80M and a net loss per share of $0.04. For FY24, it expects revenues of $360M and a net loss per share of $0.06. The company attributes the decline to more pronounced declines in its hyperscale and media businesses and the potential impact of a prolonged entertainment work stoppage. Despite the revenue headwinds, the company's gross margins are improving due to a higher revenue contribution from Primary Storage and non-hyperscale Secondary Storage customers.
August 08, 2023 | 11:48 am
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Quantum Corporation has revised its Q2 and FY24 guidance downwards, which could negatively impact its stock price in the short term. However, the company's improving gross margins could mitigate some of this impact.
The downward revision of Quantum's guidance is a negative signal to investors, which could lead to a decrease in its stock price. However, the company's improving gross margins, which indicate increasing profitability, could mitigate some of this negative impact.
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RELEVANCE 100