Penguin Solutions shares plunge 15% on weaker guidance than expected and Q4 earnings miss

MILPITAS, Calif. - Penguin Solutions, Inc. (NASDAQ: PENG) saw its shares tumble 15% in after-hours trading on Tuesday after the company reported fourth quarter earnings that missed estimates and provided weaker-than-expected guidance for fiscal 2025.

The artificial intelligence infrastructure and computing solutions provider posted adjusted earnings per share of $0.37 for Q4, falling short of analyst expectations of $0.40. Revenue came in at $311 million, below the consensus estimate of $325 million.

For the full fiscal year 2024, Penguin Solutions reported revenue of $1.17 billion, down from $1.44 billion in fiscal 2023. Non-GAAP EPS for the year was $1.25, compared to $2.52 in the prior year.

Looking ahead, the company forecast fiscal 2025 EPS of $1.50-$1.90, below the $1.92 analysts were expecting. Penguin Solutions also guided for fiscal 2025 revenue of $260-290 million, representing 15% YoY growth plus or minus 5%.

"We are pleased with our Q4 results, highlighted by our third consecutive quarter of sequential top line growth," said CEO Mark Adams. He noted the company's transition to the Penguin Solutions name "reinforces our commitment to solving the complexities of AI infrastructure."

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Source: Investing.com