Today's Trend
Quantum Corporation (NASDAQ: QMCO) is gaining investor attention after Northland Securities significantly raised its earnings forecasts and maintained an “Outperform” rating with a $24 price target.
- Northland raised its FY2027 EPS forecast to $0.31 from a projected loss of $0.28, signaling expectations for a meaningful earnings turnaround. The firm also increased its estimates for Q2 2027 to $0.09 EPS, Q3 2027 to $0.08 and Q4 2027 to $0.02.
- Longer-term expectations were upgraded sharply. Northland now forecasts FY2028 EPS of $0.86, up from $0.19, with positive EPS estimates for every quarter of 2028: $0.26 in Q1, $0.20 in Q2, $0.24 in Q3 and $0.16 in Q4.
- The largest individual revisions included Q1 2028 EPS rising to $0.26 from $0.02, Q2 2028 increasing to $0.20 from $0.05, Q3 2028 advancing to $0.24 from $0.10, and Q4 2028 improving to $0.16 from $0.03. These revisions support the view that Quantum’s profitability could improve substantially.
- Despite the bullish estimates, the consensus forecast for Quantum’s current full fiscal year remains a loss of $0.28 per share, indicating that the expected recovery is still ahead rather than fully reflected in near-term results.
The stock’s increase is therefore primarily tied to improving analyst expectations for future profitability and the reiterated $24 valuation target. However, investors should recognize that Quantum remains unprofitable on a current-year basis, making execution and delivery of the projected earnings recovery important catalysts.