Penguin Solutions Reports Q3 Revenue Below Estimates at $324.3M

Penguin Solutions reported Q3 revenue of $324.3M, missing the FactSet estimate of $328M. The company's end-to-end technology solutions include advanced computing, integrated memory, and optimized LED offerings. Its segments include AI, HPC, Cloud, Embedded Computing, and Data.

Penguin Solutions, Inc. (PENG) has reported its third-quarter (Q3) revenue of $324.3 million, which fell short of the FactSet estimate of $328 million. The company's end-to-end technology solutions encompass advanced computing, integrated memory, and optimized LED offerings, with segments including AI, HPC, Cloud, Embedded Computing, and Data.

Analysts had mixed expectations leading up to the earnings release. Stifel analyst Brian Chin reaffirmed a Buy rating and a price target of $27, while Goldman Sachs analyst Michael Ng maintained a Buy rating but cut the price target from $26 to $22.5 [3]. JP Morgan analyst Samik Chatterjee initiated coverage with a Neutral rating and a price target of $20, while Barclays analyst Tom O'Malley maintained an Overweight rating and increased the price target from $22 to $23 [3].

Penguin Solutions shares were up 1.05% at $21.09 at the time of publication, according to Benzinga Pro [1]. The company's Advanced Computing segment is expected to grow by more than 20% in fiscal 2025, driven by customer and product expansion and an "expanded go-to-market strategy" [1].

For the fiscal fourth quarter, Penguin Solutions projects revenues of $345.0 million and earnings of 33 cents per share, compared to the current consensus of $339.0 million and 30 cents per share, respectively [1].

References:
[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46277896/penguin-solutions-q3-preview-revenue-may-slip-but-1-segment-could-surprise
[2] https://www.marketscreener.com/quote/stock/PENGUIN-SOLUTIONS-50919975/sector-consensus/
[3] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46212313/penguin-solutions-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call