Penguin Solutions Q3 Preview: Revenue May Slip, But 1 Segment Could Surprise

As Penguin Solutions (NASDAQ:PENG) prepares to unveil its fiscal third-quarter results on Tuesday, market watchers are bracing for a pivotal moment that could shape the company’s trajectory for the remainder of the year.

The company is likely to report its results broadly in line with expectations, with a low-teens sequential decline in revenue, according to Stifel.

The Penguin Solutions Analyst: Analyst Brian Chin reaffirmed a Buy rating and price target of $27.

The Penguin Solutions Thesis: The Advanced Computing segment is expected to grow by more than 20% in fiscal 2025, driven by customer and product expansion as well as the company's "expanded go-to-market strategy, Chin said in the note.

Check out other analyst stock ratings.

"If further upside were to materialize, we suspect it could come from Integrated Memory given strength in pricing and signs of some +demand inflection," he wrote.

Penguin Solutions could report revenues of $325.0 million and earnings of 31 cents per share, versus a consensus of $328.1 million and 32 cents per share, respectively, the analyst stated.

The company could project top- and bottom-line of $345.0 million and 33 cents per share for the fiscal fourth quarter, versus current consensus of $339.0 million and 30 cents per share, respectively, he added.

PENG Price Action: Penguin Solutions shares were up 1.05% at $21.09 at the time of publication Monday, according to Benzinga Pro.

Read More:

• Musk Chaos Could Oust Tesla From Mag 7, Making Way For Broadcom

Photo: Shutterstock