We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Penumbra (PEN) Q2 Earnings & Revenues Top Estimates, View Up
Read MoreHide Full Article
Penumbra, Inc. (PEN - Free Report) reported second-quarter 2018 adjusted earnings per share (EPS) of 15 cents against adjusted loss of 5 cents in the year-ago quarter. Moreover, the bottom line was well above the Zacks Consensus Estimate of earnings of 3 cents per share.
Total revenues in the reported quarter surged 36% year over year (up 33.8% at constant exchange rate or CER) to $109.6 million, exceeding the Zacks Consensus Estimate by 7.2%.
Geographically, second-quarter revenues in the United States (representing 65% of total sales) grossed $71.3 million, up 33.4% from a year ago. Meanwhile, international sales (35% of total sales) improved 41.2% year over year (up 34.4% at CER) to $38.4 million.
Per the product category, revenues from neuro products grew 32% (up 29.4% at CER) to $74.2 million in the quarter under review. Revenues from peripheral vascular product business rose to $35.4 million in the second quarter, reflecting an increase of 45.3% (up 43.9% at CER) year over year.
Operational Update
Penumbra’s second-quarter gross margin was 65.9%, representing a 270-basis point (bps) expansion year over year. Further, gross profit climbed 42%.
Research and development expenses totaled $8.2 million, almost flat year over year while sales, general and administrative expenses amounted to $54.8 million, up 24%. Operating profit in the reported quarter came in at $9.3 million versus operating loss of $1.3 million in the prior-year quarter.
Financial Update
Penumbra exited the second quarter of 2018 with cash and cash equivalents of $59.7 million compared with $52.8 million at the end of the first quarter of 2018.
Outlook
Penumbra has raised its guidance for 2018 revenues. The company now expects total revenues in the range of $420-$425 million compared with the earlier-provided projection of $410-$415 million. The Zacks Consensus Estimate of $418.1 million is below the guided range.
Our Take
Penumbra exited second-quarter 2018 with better-than-expected results. The year-over-year comparison of earnings was favorable as well. Moreover, the company witnessed strong growth across all geographies as well as product lines. The company is focusing on product innovation through research and development. On the flip side, escalating costs and expenses are weighing on the bottom line.
Penumbra is an active player in the fast-growing interventional therapies space. In fact, the company’s products primarily cater to unmet clinical needs across the two major markets of neuro and peripheral vascular.
Zacks Rank & Key Picks
Penumbra has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical sector which reported solid results this earnings season are Intuitive Surgical (ISRG - Free Report) , Chemed Corporation (CHE - Free Report) and Align Technology, Inc. (ALGN - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), Chemed and Align Technology carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported second-quarter 2018 adjusted EPS of $2.76, which beat the Zacks Consensus Estimate of $2.48. Revenues totaled $909.3 million, also surpassing the consensus estimate of $870 million.
Chemed reported second-quarter 2018 adjusted EPS of $2.81, which trumped the Zacks Consensus Estimate of $2.68. Revenues of $441.8 million edged past the Zacks Consensus Estimate of $432.3 million.
Align Technology posted second-quarter 2018 adjusted EPS of $1.30, steering past the Zacks Consensus Estimate of $1.09. Revenues came in at $490.3 million, beating the consensus estimate of $462.9 million.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Penumbra (PEN) Q2 Earnings & Revenues Top Estimates, View Up
Penumbra, Inc. (PEN - Free Report) reported second-quarter 2018 adjusted earnings per share (EPS) of 15 cents against adjusted loss of 5 cents in the year-ago quarter. Moreover, the bottom line was well above the Zacks Consensus Estimate of earnings of 3 cents per share.
Total revenues in the reported quarter surged 36% year over year (up 33.8% at constant exchange rate or CER) to $109.6 million, exceeding the Zacks Consensus Estimate by 7.2%.
Geographically, second-quarter revenues in the United States (representing 65% of total sales) grossed $71.3 million, up 33.4% from a year ago. Meanwhile, international sales (35% of total sales) improved 41.2% year over year (up 34.4% at CER) to $38.4 million.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. Price, Consensus and EPS Surprise | Penumbra, Inc. Quote
Per the product category, revenues from neuro products grew 32% (up 29.4% at CER) to $74.2 million in the quarter under review. Revenues from peripheral vascular product business rose to $35.4 million in the second quarter, reflecting an increase of 45.3% (up 43.9% at CER) year over year.
Operational Update
Penumbra’s second-quarter gross margin was 65.9%, representing a 270-basis point (bps) expansion year over year. Further, gross profit climbed 42%.
Research and development expenses totaled $8.2 million, almost flat year over year while sales, general and administrative expenses amounted to $54.8 million, up 24%. Operating profit in the reported quarter came in at $9.3 million versus operating loss of $1.3 million in the prior-year quarter.
Financial Update
Penumbra exited the second quarter of 2018 with cash and cash equivalents of $59.7 million compared with $52.8 million at the end of the first quarter of 2018.
Outlook
Penumbra has raised its guidance for 2018 revenues. The company now expects total revenues in the range of $420-$425 million compared with the earlier-provided projection of $410-$415 million. The Zacks Consensus Estimate of $418.1 million is below the guided range.
Our Take
Penumbra exited second-quarter 2018 with better-than-expected results. The year-over-year comparison of earnings was favorable as well. Moreover, the company witnessed strong growth across all geographies as well as product lines. The company is focusing on product innovation through research and development. On the flip side, escalating costs and expenses are weighing on the bottom line.
Penumbra is an active player in the fast-growing interventional therapies space. In fact, the company’s products primarily cater to unmet clinical needs across the two major markets of neuro and peripheral vascular.
Zacks Rank & Key Picks
Penumbra has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical sector which reported solid results this earnings season are Intuitive Surgical (ISRG - Free Report) , Chemed Corporation (CHE - Free Report) and Align Technology, Inc. (ALGN - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), Chemed and Align Technology carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported second-quarter 2018 adjusted EPS of $2.76, which beat the Zacks Consensus Estimate of $2.48. Revenues totaled $909.3 million, also surpassing the consensus estimate of $870 million.
Chemed reported second-quarter 2018 adjusted EPS of $2.81, which trumped the Zacks Consensus Estimate of $2.68. Revenues of $441.8 million edged past the Zacks Consensus Estimate of $432.3 million.
Align Technology posted second-quarter 2018 adjusted EPS of $1.30, steering past the Zacks Consensus Estimate of $1.09. Revenues came in at $490.3 million, beating the consensus estimate of $462.9 million.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>