Quantum: Turnaround Is On Track But Shares Aren't Yet A Buy

Ian BezekInvesting Group LeaderFollow5ShareSavePlay(9min)Comments(2)SummaryQuantum Corporation delivered a positive Q3 revenue surprise, exceeding both internal guidance and street expectations.QMCO's sequential double-digit revenue growth and backlog surge suggest early signs of a potentially successful turnaround.Despite operational improvements, Quantum remains far from GAAP profitability.I maintain a Hold rating, as QMCO needs a lot more growth to stem its current operating losses.Looking for a helping hand in the market? Members of Ian's Insider Corner get exclusive ideas and guidance to navigate any climate. Learn More » nikkormat42/iStock via Getty Images I've been a skeptic of a number of quantum-themed stocks over the past year. That would include Quantum Corporation (QMCO), which I wrote about with a bearish perspective in September, arguing that it was notThis article was written byIan Bezek23.42K FollowersFollowIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.