Quantum Corp drops on surprise Q3 loss, disappointing outlook

Quantum

10/02/2022 12:52

** Shares of video storage company  QMCO.O  tumble 31.1% to
$3.41 premarket, their lowest level since May 2020
    ** Co posts Q3 adj loss of 7 cents/shr vs Refinitiv est for
profit of 1 cent/shr; rev fell 2.7% to $95.34 mln, also missing
expectations of $104.38 mln  urn:newsml:reuters.com:*:nPn9DcLjJa
    ** QMCO says results impacted by product shortages as well
as higher-than-expected manufacturing, freight, warehouse and
other logistics costs
    ** To tackle rising cost pressures, we are immediately
implementing another price increase this quarter across product
categories and beginning operating expense reduction programs -
QMCO
    ** Co forecasts Q4 rev of $92 mln, plus or minus $5 mln and
adj loss of $0.07/shr, plus or minus $0.02, which misses Street
expectations   
    ** About 252,200 shares have traded premarket, ~106.5% of
their 30-DMA volume
    ** All four brokerages covering the stock rate it "buy" or
higher; their median PT is $11 - Refinitiv data
    ** As of last close, stock down 10.3% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))