06:31 AM EDT, 07/09/2025 (MT Newswires) -- Penguin Solutions ( PENG ) shares fell early Wednesday as the technology firm reported fiscal third-quarter sales below market expectations, although it lifted its full-year earnings outlook.

Adjusted earnings came in at $0.47 per share for the quarter ended May 30, up from $0.37 the year before, the company said late Tuesday, while the consensus on FactSet was for $0.38. Sales improved 7.9% to $324.3 million, but fell short of the Street's view for $326.4 million. The stock declined 6.1% in the most recent premarket activity.

"We delivered solid third-quarter results while executing against our strategic objectives," Chief Executive Mark Adams said in a statement. "We also strengthened our balance sheet through a refinancing after the close of (the third quarter), and we remain focused on developing our (artificial intelligence) software and services capabilities, expanding go-to-market resources, and driving long-term value for our stockholders."

For fiscal 2025, the company now anticipates adjusted EPS to be in a range of $1.75 to $1.85, up from its previous projections of $1.50 to $1.70. The current average analyst estimate is for $1.76.

Penguin Solutions ( PENG ) continues to forecast sales to grow 17% at the midpoint on an annual basis for the full year, but within a tighter range of plus or minus 2%, versus the prior guidance of plus or minus 3%. The Street is looking for $1.37 billion.

"Our outlook for fiscal year 2025 is based on the current environment, which contemplates, among other things, the global macroeconomic environment and ongoing supply chain constraints, especially as they relate to our advanced computing and optimized LED businesses," Chief Financial Officer Nathan Olmstead said during an earnings call, according to a FactSet transcript.

For the third quarter, the firm recorded sales of $132.5 million in its advanced computing segment, down from nearly $145 million in the prior-year period. Revenue in the integrated memory division climbed to $130.1 million from $91.6 million last year, amid robust demand from the company's computing, networking and telecommunications customers, Adams said on the call. Optimized LED revenue fell to $61.6 million from about $64 million, largely due to increased cost and tariff-related uncertainties on product shipments from its Chinese facility, according to Adams.

"Despite macro uncertainty in the LED market, we remain confident in our high-performance product portfolio," the CEO added.