Investing.com -- Shares of Penguin Solutions (NASDAQ:PENG) leaped 17% in afterhours trade Wednesday following the company’s fiscal first-quarter earnings release, which exceeded Wall Street expectations.
The semiconductor device company’s performance was particularly bolstered by its Advanced Computing unit, which analysts have identified as a standout in the report.
Penguin Solutions’ financial results showcased a solid start to the fiscal year, with sales and profit surpassing analyst forecasts. The company’s Advanced Computing segment has been instrumental in driving this growth, a fact underscored by Needham analyst Nick Doyle.
In a note to clients, Doyle remarked, “Advance Compute revenue is running well above our 1H25 estimates on the delivery and completion of two large projects,” highlighting the segment’s significant contribution to the company’s overall performance.
The positive sentiment was echoed by Needham’s broader analysis, which suggests that the second half of the fiscal year might be set for a conservative estimate. The firm maintains a ’Buy’ rating on Penguin Solutions, raising its price target to $27 from $25, with the expectation that the
Advanced Computing growth could significantly surpass the high end of the company’s guidance, especially if one or two customer wins materialize.
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