Anthony Lee
Semiconductor maker Penguin Solutions (NASDAQ:PENG) will be reporting earnings this Tuesday after market hours. Here’s what you need to know.
Penguin Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $478.7 million, up 47.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is Penguin Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Penguin Solutions’s revenue to grow 54.2% year on year, improving from the 8.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Penguin Solutions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Penguin Solutions’s peers in the semiconductors segment, only Micron has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 379%. The stock traded up 2.9% on the results.
Read our full analysis of Micron’s earnings results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 11.6% on average over the last month. Penguin Solutions is up 19.9% during the same time and is heading into earnings with an average analyst price target of $74.29 (compared to the current share price of $61.75).
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