A Glimpse of Penguin Solutions's Earnings Potential
Penguin Solutions (NASDAQ:PENG) will release its quarterly earnings report on Tuesday, 2026-01-06. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Penguin Solutions to report an earnings per share (EPS) of $0.37.
The announcement from Penguin Solutions is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
The company's EPS beat by $0.12 in the last quarter, leading to a 16.02% drop in the share price on the following day.
Here's a look at Penguin Solutions's past performance and the resulting price change:
| Quarter | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
| EPS Estimate | 0.31 | 0.33 | 0.38 | 0.39 |
| EPS Actual | 0.43 | 0.47 | 0.52 | 0.49 |
| Price Change % | -16.00 | 11.00 | -10.00 | -4.00 |
Market Performance of Penguin Solutions's Stock
Shares of Penguin Solutions were trading at $20.28 as of January 02. Over the last 52-week period, shares are up 2.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Penguin Solutions
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Penguin Solutions.
A total of 5 analyst ratings have been received for Penguin Solutions, with the consensus rating being Buy. The average one-year price target stands at $28.6, suggesting a potential 41.03% upside.
Peer Ratings Overview
The following analysis focuses on the analyst ratings and average 1-year price targets of SkyWater Technology and Indie Semiconductor, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for SkyWater Technology, with an average 1-year price target of $21.5, suggesting a potential 6.02% upside.
- Analysts currently favor an Neutral trajectory for Indie Semiconductor, with an average 1-year price target of $5.0, suggesting a potential 75.35% downside.
Analysis Summary for Peers
Within the peer analysis summary, vital metrics for SkyWater Technology and Indie Semiconductor are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Penguin Solutions | Buy | 8.60% | $96.73M | 1.19% |
| SkyWater Technology | Buy | 60.68% | $36.22M | 121.00% |
| Indie Semiconductor | Neutral | -0.54% | $21.50M | -10.08% |
Key Takeaway:
Penguin Solutions ranks highest in gross profit among its peers. It is in the middle for consensus rating. The company is at the bottom for revenue growth and return on equity.
Discovering Penguin Solutions: A Closer Look
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
Penguin Solutions's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Penguin Solutions showcased positive performance, achieving a revenue growth rate of 8.6% as of 31 August, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Penguin Solutions's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.72% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Penguin Solutions's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.19%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Penguin Solutions's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.34% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Penguin Solutions's debt-to-equity ratio stands notably higher than the industry average, reaching 1.33. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Penguin Solutions visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.