Quantum Shares Leaped Backward: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quantum (NYS: QTM) took a leap backward today, just like Dr. Sam Beckett from the iconic 2-decade-old TV show, trading as much as 26% lower after the company reported third-quarter earnings.

So what: Revenue turned out to be $173 million, down about 2% from the prior year, with non-GAAP earnings per share of a nickel. The top- and bottom-line results beat and met expectations, which were for $171.1 million in sales and $0.05 per share in profit.

Now what: The company attributed the year-over-year declines in revenue and profit to expected reductions in OEM and royalty revenue, along with lower tape-related service and media royalty revenue. The outlook for next quarter is also weighing on shares, as Quantum expects gross margin to contract and predicts revenue of $160 million to $170 million.

Interested in more info on Quantum? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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