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PENG — Penguin Solutions News Story

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Penguin Solutions revenue beats expectations in Q3, raises FY outlook

Penguin Solutions revenue beats expectations in Q3, raises FY outlook


Overview

  • US memory and AI infrastructure provider's fiscal Q3 net sales rose 48%, beating analyst expectations

  • Adjusted EPS and adjusted operating income for fiscal Q3 both beat analyst expectations

  • Company raised full-year outlook for net sales and EPS on strong AI-driven demand


Outlook

  • Penguin Solutions raises full-year net sales growth outlook to 22% +/-2%

  • Company now sees full-year GAAP EPS of $1.97 +/- $0.05

  • Company expects full-year non-GAAP EPS of $2.60 +/- $0.05


Result Drivers

  • AI-DRIVEN DEMAND - Co said very strong AI-driven customer demand fueled growth in Integrated Memory and AI Infrastructure segments

  • INTEGRATED MEMORY GROWTH - Integrated Memory net sales more than doubled year over year, supported by new customer wins and expanded relationships

  • AI INFRASTRUCTURE MOMENTUM - Continued momentum in AI Infrastructure business with four new customer wins in Q3 and expanded commercial relationships


Company press release: ID:nBw4n3brFa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Sales

Beat

$478.71 mln

$405.53 mln (7 Analysts)

Q3 Adjusted EPS

Beat

$0.84

$0.54 (7 Analysts)

Q3 EPS

$0.68

Q3 Adjusted Net Income

$52.25 mln

Q3 Adjusted Operating Income

Beat

$64.38 mln

$45.09 mln (7 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for Penguin Solutions Inc is $60.00, about 11.4% below its July 6 closing price of $67.71

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 8 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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