Yahoo Movies Quantum Corporation's (NASDAQ:QMCO) Profit Outlook
Quantum Corporation (NASDAQ:QMCO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Quantum Corporation provides products for storing and managing digital video and video-like data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company’s loss has recently broadened since it announced a US$5.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$22m, moving it further away from breakeven. Many investors are wondering about the rate at which Quantum will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Quantum
Quantum is bordering on breakeven, according to the 4 American Tech analysts. They expect the company to post a final loss in 2022, before turning a profit of US$42m in 2023. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 112%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Quantum's growth isn’t the focus of this broad overview, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Quantum currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Quantum which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Quantum, take a look at Quantum's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:
Valuation: What is Quantum worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Quantum is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Quantum’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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