Penguin Solutions beats Q2 revenue estimates, lifts FY outlook
Overview
U.S. AI platform provider's Q2 revenue fell 6% yr/yr but beat analyst expectations
Adjusted EPS for Q2 matched prior year and beat analyst expectations
Company raised full-year net sales and EPS outlook, citing strong memory demand
Outlook
Penguin Solutions raises FY26 net sales outlook to 12% YoY Growth +/-5%, up, from 6% YoY Growth +/-10%
Company lifts FY26 non-GAAP diluted EPS guidance to $2.15 +/- $0.15 from $2.00 +/- $0.25
Company cites strong memory demand and disciplined execution as drivers for improved outlook
Result Drivers
MEMORY SEGMENT GROWTH - Integrated Memory sales rose sharply in Q2, offsetting declines in other segments
Company press release: ID:nBw45jx8Wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted Revenue | Beat | $343 mln | $337.94 mln (8 Analysts) |
Q2 Adjusted EPS | Beat | $0.52 | $0.42 (8 Analysts) |
Q2 EPS |
| $0.58 |
|
Q2 Adjusted Net Income |
| $34.1 mln |
|
Q2 Adjusted Operating Income | Beat | $45.3 mln | $36.49 mln (8 Analysts) |
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 $25.50, about 44.9% above its March 31 closing price of $17.60
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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