Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Core Viewpoint - Penguin Solutions, Inc. (PENG) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism about the company's earnings prospects, which is expected to be mirrored in the stock price [2]. - For the current quarter, the earnings estimate is $0.37 per share, showing no year-over-year change, but the Zacks Consensus Estimate has increased by 18.92% due to two upward revisions [6]. - For the full year, the earnings estimate is $1.85 per share, representing a 48.0% increase from the previous year, with the consensus estimate rising by 15.21% following two upward revisions [7][8]. Zacks Rank - Penguin Solutions, Inc. currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock outperformance [3][9]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. Stock Performance - The stock has gained 27.5% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [10].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Stock Analysis - Penguin Solutions, Inc. (PENG) - Penguin Solutions, Inc. (PENG) has shown significant recent price momentum with a four-week price change of 25% [4] - Over the past 12 weeks, PENG's stock has gained 51.8%, indicating strong long-term momentum [5] - PENG has a high beta of 1.98, suggesting it moves 98% more than the market in either direction, reflecting its fast-paced momentum [5] - The stock has a Momentum Score of A, indicating a favorable time to invest [6] - PENG has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.94, indicating it is reasonably valued at 94 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides PENG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

I gave a buy rating to Penguin Solution (NASDAQ: PENG ) previously, with my key thesis being that the growth momentum was still strong and I expected it to continue driving revenue growth acceleration. PENG continues toI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality compani ...

Core Viewpoint - Penguin Solutions Inc. reported strong earnings for Q3, exceeding earnings estimates but falling short on sales expectations [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q3 were 47 cents, surpassing market estimates of 33 cents [1]. - Quarterly sales totaled $324.25 million, compared to expectations of $328.81 million [1]. Guidance Update - The company raised its FY2025 adjusted EPS guidance from a range of $1.50-$1.70 to $1.75-$1.85 [1]. - Sales forecast was narrowed from $1.33 billion-$1.41 billion to $1.35 billion-$1.39 billion [1]. Strategic Focus - The CEO emphasized the company's commitment to strategic objectives, including strengthening the balance sheet and developing AI software and services [2]. - The company is focused on expanding go-to-market resources and driving long-term value for shareholders [2]. Stock Performance - Following the earnings announcement, Penguin Solutions shares increased by 6%, trading at $22.45 [2]. Analyst Ratings and Price Targets - Goldman Sachs maintained a Buy rating and raised the price target from $22.5 to $25 [5]. - JP Morgan maintained a Neutral rating and increased the price target from $18 to $21 [5]. - JMP Securities reiterated a Market Outperform rating with a $26 price target [5]. - Needham maintained a Buy rating with a price target of $27 [5].

Penguin Solutions, Inc. (PENG) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +56.67%. A quarter ago, it was expected that this company would post earnings of $0.35 per share when it actually produced earnings of $0.52, delivering a surprise of +48.57%.Over the last four quarters, the ...

Financial Data and Key Metrics Changes - Revenue for Q3 fiscal year 2025 was $324 million, an increase of 7.9% compared to Q3 fiscal year 2024 [4][20] - Non-GAAP diluted earnings per share was $0.47, a 25% increase year over year [5][21] - Non-GAAP operating income was $38 million, up 15% from the prior year [5][21] - Non-GAAP gross margin was 31.7%, down 0.6 percentage points year over year [21][22] Business Segment Data and Key Metrics Changes - Advanced Computing revenue was $132 million, down 9% year over year [21][10] - Integrated Memory revenue was $130 million, up 42% year over year [21][12] - Optimized LED revenue was $62 million, down 4% year over year [21][15] Market Data and Key Metrics Changes - Strong demand for Integrated Memory from computing, networking, and telecommunications customers [12] - Pricing in both DRAM and NAND appears stable, with balanced inventory levels at major customers [13] Company Strategy and Development Direction - The company is focusing on AI infrastructure solutions and has seen early-stage enterprise AI adoption across various sectors [5][6] - Investments in channel partnerships are being made to provide new growth opportunities [8] - The company has transitioned to providing a full-year financial outlook to better reflect the timing of AI infrastructure deployments [9] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full-year revenue growth outlook at 17% and raised the non-GAAP diluted earnings per share outlook to $1.8 [9][29] - The company is navigating macroeconomic uncertainties while investing in long-term growth [32] Other Important Information - The company completed a refinancing that reduced gross leverage and extended debt maturity [17][28] - The re-domiciliation from the Cayman Islands to the United States as a Delaware Corporation was completed [17][18] Q&A Session Summary Question: Details on new customer bookings - The sales cycle for new customers typically ranges from 12 to 18 months, with hardware recognized upfront and software/services recognized over time [35][36] Question: Collaboration with SK Telecom - The relationship with SK Telecom is expected to generate new business opportunities globally, particularly in AI data center infrastructure [39][40] Question: Memory segment growth dynamics - No significant pull forwards were observed in memory demand, and the pipeline remains healthy [45][46] Question: Advanced computing segment outlook - The growth in advanced computing is expected to be more diversified across multiple customers rather than driven by one major deployment [50][51] Question: Incremental deployments in advanced computing - Strength is seen in federal, energy, and biotech sectors, with increased interest in the financial sector [53] Question: CDW agreement details - The company is investing in partnerships to scale customer engagement and expand internationally [59][60] Question: Software and services revenue growth - Services revenue growth was driven by a mix of ratified services and lower hardware revenue recognition in Q3 [61] Question: Strength in memory products - DRAM pricing stability has been observed, and the attach rate of memory products to advanced computing products is being developed [70]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $324 million, an increase of 7.9% compared to Q3 2024 [4][19] - Non-GAAP gross margin was 31.7%, down 0.6 percentage points year over year [21] - Non-GAAP diluted earnings per share was $0.47, a 25% increase year over year [5][20] - Non-GAAP operating income was $38 million, up 15% from the prior year [5][21] Business Segment Data and Key Metrics Changes - Advanced Computing revenue was $132 million, down 9% year over year [20] - Integrated Memory revenue was $130 million, up 42% year over year [20] - Optimized LED revenue was $62 million, down 4% year over year [20] Market Data and Key Metrics Changes - Strong demand observed in sectors such as financial services, energy, defense, education, and neo cloud segments [5][6] - Integrated Memory segment saw a 24% increase in revenue compared to the prior quarter [11] Company Strategy and Development Direction - Company is focusing on transforming into a leader in high-performance enterprise infrastructure solutions [5] - Investment in channel partnerships to create new growth opportunities [7] - Transitioned to providing a full-year financial outlook to better reflect business dynamics [8] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year revenue growth outlook at 17% [8] - Anticipation of growth in AI infrastructure deployments in 2025 and 2026 [5][6] - Management expressed confidence in navigating macroeconomic uncertainties while investing for long-term growth [30] Other Important Information - Completed a refinancing to strengthen the balance sheet and reduce gross leverage [16] - Re-domiciled from the Cayman Islands to the United States as a Delaware Corporation [16] Q&A Session Summary Question: Details on new customer bookings - New customer bookings typically take 12 to 18 months to finalize, with hardware recognized upfront and software/services recognized over time [32][34] Question: Collaboration with SK Telecom - Positive progress with SK Telecom and SK Hynix, focusing on AI data center infrastructure solutions globally [36][38] Question: Memory segment growth dynamics - No significant pull forwards observed; healthy pipeline for Q4 [42][44] Question: Advanced computing segment strength - Growth in Q4 expected from a diversified customer base rather than a single large deployment [46][48] Question: Incremental deployments in advanced computing - Strength seen in federal, energy, and biotech sectors, with increased interest from the financial sector [51] Question: CDW agreement details - Early success in partnerships with CDW and Dell, focusing on scaling customer reach [57][58] Question: Services revenue growth - Services revenue growth driven by a mix of ratified services and lower hardware deals in Q3 [60] Question: Memory product strength - DRAM pricing stable; memory gross margins slightly impacted by higher DRAM percentage [68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38102 PENGUIN SOLUTIONS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Performance - Penguin Solutions' Q3 FY25 revenue reached $324 million, a 7.9% increase compared to the year-ago quarter[12] - The non-GAAP gross margin was 31.7%[12] - Non-GAAP diluted EPS was $0.47, a 25% increase year-over-year[12] - Non-GAAP operating income was $38 million, a 15% increase compared to the previous year, with a non-GAAP operating margin of 11.9%[12] Segment Performance - Advanced Computing generated $132 million in revenue, a sequential decrease due to the timing of a large hyperscaler deployment in Q2[24] - Integrated Memory revenue was $130 million, a 24% sequential increase driven by strong demand across computing, networking, and telecom customers[26] - Optimized LED revenue was $62 million, a slight increase compared to the prior quarter, impacted by tariff-related costs and uncertainty related to products from Huizhou, China[29] Strategic Initiatives - Penguin Solutions completed redomiciliation to the United States (Delaware) on June 30, supporting ongoing transformation and aligning with strategic long-term goals[40] - A refinancing was announced on June 26, strengthening the balance sheet by reducing gross leverage, extending debt maturity, and establishing a new $400 million revolving credit facility[40] FY25 Outlook (Non-GAAP) - Net Sales: 17% YoY Growth +/- 2%[50] - Gross margin: 31% +/- 0.5%[50] - Operating expenses: $260 million +/- $5 million[50] - Diluted earnings per share: $1.80 +/- $0.05[50]