Data center firm Penguin's Q1 adjusted revenue beats estimates

Overview

• Tech solutions provider's fiscal Q1 adjusted revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company agreed to divest remaining interest in Brazil memory module business

Outlook

• Penguin Solutions expects fiscal year 2026 net sales to grow 6% YoY +/- 10%

• Company projects fiscal year 2026 GAAP gross margin at 27% +/- 1%

• Penguin Solutions anticipates fiscal year 2026 non-GAAP EPS of $2.00 +/- $0.25

Result Drivers

• INTEGRATED MEMORY GROWTH - Integrated Memory segment sales increased significantly, contributing to overall revenue growth

• AI MARKET SHIFT - Co sees a shift in AI market towards enterprise adoption and production-scale deployments, aligning with its strengths

• OPERATIONAL EXCELLENCE - Co attributed solid Q1 results to operational excellence

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $26.50, about 25.8% above its January 5 closing price of $21.07

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw9QcSpba

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