Penguin Solutions, Inc. (PENG) shares tumbled 7.03% in after-hours trading on Tuesday following the release of its third-quarter fiscal 2025 financial results. The company reported mixed performance, with earnings beating expectations but revenue falling short of estimates.

For the third quarter, Penguin Solutions posted adjusted earnings per share of $0.47, surpassing the analyst consensus of $0.33. However, net sales came in at $324.25 million, missing the projected $328.81 million. The company's GAAP earnings per share dropped to $(0.01) from $0.10 in the same quarter last year, partly due to a $5.29 million goodwill impairment charge.

Despite the revenue miss, Penguin Solutions raised its full-year outlook. The company now expects fiscal 2025 adjusted earnings per share of $1.80, plus or minus $0.05, up from its previous guidance of $1.60, plus or minus $0.10. This optimistic forecast, however, was not enough to offset investor concerns about the company's overall performance. The stock's sharp decline in after-hours trading suggests that market participants are focusing on the revenue miss and the goodwill impairment rather than the improved earnings guidance.