These Analysts Increase Their Forecasts On Penguin Solutions After Better-Than-Expected Q3 Earnings

Penguin Solutions Inc. (NASDAQ:PENG) reported upbeat earnings for the third quarter, while sales missed estimates on Tuesday.

Penguin Solutions posted adjusted earnings of 47 cents per share, beating market estimates of 33 cents per share. The company's quarterly sales came in at $324.25 million versus expectations of $328.81 million.

The company raised its FY2025 adjusted EPS guidance from $1.50-$1.70 to $1.75-$1.85, but narrowed its sales forecast from $1.33 billion-$1.41 billion to $1.35 billion-$1.39 billion.

“We delivered solid third quarter results while executing against our strategic objectives,” said Mark Adams, chief executive officer of Penguin Solutions. “We also strengthened our balance sheet through a refinancing after the close of Q3, and we remain focused on developing our AI software and services capabilities, expanding go-to-market resources, and driving long-term value for our stockholders.”

Penguin Solutions shares gained 6% to trade at $22.45 on Wednesday.

These analysts made changes to their price targets on Penguin Solutions following earnings announcement.

• Goldman Sachs analyst Michael Ng maintained Penguin Solutions with a Buy and raised the price target from $22.5 to $25.
• JP Morgan analyst Samik Chatterjee maintained the stock with a Neutral and raised the price target from $18 to $21.
• JMP Securities analyst Rustam Kanga reiterated Penguin Solutions with a Market Outperform and maintained a $26 price target.
• Needham analyst Quinn Bolton reiterated the stock with a Buy and maintained a $27 price target.

Considering buying PENG stock? Here’s what analysts think:

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