Semiconductor maker Penguin Solutions (NASDAQ: PENG) will be reporting earnings tomorrow afternoon. Here’s what investors should know.

Penguin Solutions missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $337.9 million, up 8.6% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Is Penguin Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Penguin Solutions’s revenue to be flat year on year at $339.1 million, slowing from the 24.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Penguin Solutions has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Penguin Solutions’s peers in the semiconductors segment, only Micron has reported results so far. It beat analysts’ revenue estimates by 5%, delivering year-on-year sales growth of 56.7%. The stock traded up 9.9% on the results.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 4% on average over the last month. Penguin Solutions is down 4.7% during the same time and is heading into earnings with an average analyst price target of $27.63 (compared to the current share price of $21.08).

P.S. STOP buying the AI stocks everyone's talking about. The real money? It’s in the profitable pick nobody’s watching yet. We’ve identified an AI profit machine that’s flying under Wall Street’s radar—for now. We can’t keep this research public forever—grab your FREE copy before we pull it offline. GO HERE NOW.