PENG

Company Performance: Penguin Solutions Inc reported a strong second quarter with revenue of $366 million, surpassing expectations and driven by growth in Advanced Computing and Integrated Memory sectors. The company also raised its full-year revenue growth target from 15% to 17%.

Stock Reaction: Despite the positive earnings report, shares of Penguin Solutions fell by over 10% to $16.21 in early trading on Thursday, indicating a disconnect between performance and market reaction.

Fastest News Alerts: Benzinga Pro offers real-time intelligence and alerts for traders to stay updated on stock market movements.

Exclusive Community: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories from Benzinga reporters.

Stock Market Reaction: U.S. stock futures dropped significantly after President Trump's announcement of new trade tariffs, with major indices down over 2-4% in premarket trading, while gold prices reached a record high as investors sought safe-haven assets.

Economic Concerns: Analysts expressed worries about the potential negative impact of the tariffs on global economic growth, with predictions of increased recession risks and a shift in investor focus towards dividend-paying value stocks amid widespread equity weakness.

Penguin Solutions Performance: Shares of Penguin Solutions, Inc. rose 2% to $18.41 in pre-market trading after the company reported better-than-expected second-quarter results and projected a 17% year-over-year net sales growth for FY25.

Stock Movements: Several stocks experienced significant changes in pre-market trading, with Protagenic Therapeutics gaining 173.2% and Kolibri Global Energy falling 41.7%, reflecting a mix of gains and losses across various companies.

Earnings Reports: Acuity Inc. is expected to report earnings of $3.70 per share, while RH reported disappointing fourth-quarter results with revenue below expectations, causing a significant drop in its stock price.

Market Reactions: Conagra Brands and Exxon Mobil are also set to release earnings soon, with their stocks experiencing slight declines in after-hours trading, while Penguin Solutions saw a positive response with a 4.6% increase after better-than-expected results.

Market Reaction to Tariffs: U.S. stock futures fell sharply after President Trump announced Reciprocal Tariffs on several countries, leading to significant declines in major indices such as the S&P 500 and Nasdaq 100, with Apple experiencing a notable drop due to its exposure to China manufacturing.

Commodity Prices and Earnings Impact: Commodities also saw declines, particularly crude oil and copper, amid concerns over global demand; meanwhile, several companies reported earnings with mixed results, notably Bassett Furniture rising while others like RH and Wayfair faced steep losses.

Strong Financial Performance: Penguin Solutions reported a 28% year-over-year revenue growth to $366 million in Q2 2025, with non-GAAP earnings per share increasing by 97% to $0.52, driven by significant advancements in the Advanced Computing and Integrated Memory segments.

Optimistic Outlook and Strategic Initiatives: The company raised its fiscal 2025 revenue growth forecast to 17%, highlighting strategic partnerships in AI infrastructure with SK Telecom and Dell, while acknowledging potential risks related to supply chain constraints and macroeconomic impacts.

Earnings Report: PENGUIN SOLUTIONS ($PENG) reported quarterly earnings of $0.52 per share, exceeding estimates of $0.39, and revenue of $365.52 million, surpassing expectations of $351.87 million.

Insider Trading and Analyst Ratings: In the past six months, insiders have sold $PENG stock seven times with no purchases, while analysts have issued four buy ratings and set a median price target of $24.00 for the stock.

Earnings Reports Overview: Several companies, including RH, Penguin Solutions, Franklin Covey, Resources Connection, and Bassett Furniture, are set to report their earnings, with RH and Penguin Solutions expected to show significant increases in earnings per share compared to the previous year.

Performance Expectations: While RH and Penguin Solutions anticipate strong growth, Franklin Covey and Resources Connection are projected to experience declines in earnings, indicating varied performance across these companies within their respective industries.

Redomiciliation Announcement: Penguin Solutions has approved a plan to move its parent company from the Cayman Islands to the U.S., with shares being exchanged on a one-for-one basis for new stock in Delaware.

Benefits of Redomiciliation: CEO Mark Adams stated that this move will streamline the company's organizational and regulatory structure, ultimately benefiting shareholders.

Earnings Call Announcement: Penguin Solutions will host its quarterly financial webcast and conference call for Q2 FY2025 on April 2, 2025, at 1:30 PM PT, with results released beforehand.

Access Information: Participants can join the call via a dedicated phone line or through a live webcast, with replay options available for both the audio call and the webcast on their investor relations website.

Insider Trading Activity: Jack A Pacheco, EVP of $PENG, sold 6,667 shares for approximately $147,594, representing about 2.8% of his holdings, leaving him with 231,548 shares. Over the past six months, all insider trades in $PENG have been sales, totaling six transactions without any purchases.

Disclaimer on Financial Advice: The article emphasizes that it is not financial advice and encourages readers to refer to Quiver Quantitative's disclaimers for more information regarding insider trading data.

Upcoming Meetings: Loop Capital will host meetings in New York on February 13 and in Boston on February 14 to discuss investment opportunities.

Investment Insights: TipRanks offers a Smart Score tool to help investors identify top-performing stocks and track their performance against Wall Street analysts' recommendations.

New LED Technology: Cree LED has launched the XLamp XP-L Photo Red S Line LEDs, designed for high-performance horticulture lighting with improved efficiency and durability, suitable for large-scale growing operations like greenhouses and vertical farms.

Cost Benefits and Upgrades: The new LEDs offer a 6% increase in Wall-Plug Efficiency, allowing horticulture customers to reduce operating costs and maintenance while enabling seamless upgrades to existing lighting systems.

Stock Performance Overview: PENG's stock has a 52-week low of $14.87 and a high of $29.81, with the last trade recorded at $20.06.

Author's Perspective Disclaimer: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Insider Trading Activity: Jack A Pacheco, EVP of $PENG, sold 6,667 shares for approximately $137,024, representing about 2.8% of his holdings, leaving him with 231,548 shares. In the past six months, all insider trades for $PENG have been sales, totaling four transactions without any purchases.

Disclaimer on Financial Advice: The article emphasizes that it is not financial advice and encourages readers to refer to Quiver Quantitative's disclaimers for more information regarding insider trading data.

CXL Certification Achievement: SMART Modular Technologies has successfully passed the CXL 2.0 certification tests for its 4-DIMM and 8-DIMM memory expansion cards, affirming its commitment to high-quality and compatible memory solutions.

Commitment to Innovation: The company emphasizes its dedication to developing advanced memory solutions that enhance computing system efficiency, responding to the growing global demand for high-speed data processing.

CXL Compliance Achievement: SMART Modular Technologies has successfully passed CXL 2.0 compliance testing for its 4-DIMM and 8-DIMM memory Add-in Cards, earning a place on the CXL Consortium's Integrators' List, which highlights their commitment to high-quality and interoperable memory solutions.

Industry Leadership and Innovation: The recognition of SMART's products underscores their technical expertise and dedication to innovation in integrated memory technology, aimed at meeting the growing demand for high-speed data processing in modern computing systems.

SMART Modular Technologies Achieves CXL Compliance: SMART Modular's 4-DIMM and 8-DIMM CXL memory Add-in Cards have successfully passed CXL 2.0 compliance testing and are now listed on the CXL Consortium's Integrators' List, showcasing the company's commitment to high-quality, interoperable memory solutions.

Leadership in Memory Technology: The inclusion of these products highlights SMART Modular's technical expertise and dedication to innovation in integrated memory technology, addressing the growing demand for high-speed data processing in modern computing systems.

CXL Compliance Achievement: SMART Modular Technologies announced that its 4-DIMM and 8-DIMM CXL memory add-in cards have passed the CXL 2.0 compliance tests, marking a significant milestone in providing high-quality, interoperable memory solutions.

Commitment to Innovation: The company emphasizes its dedication to meeting evolving customer needs through advanced memory solutions, reinforcing its role as a leader in memory technology amidst increasing demand for high-speed data processing.