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Penumbra (PEN) Q4 Earnings Top Estimates, Sales Remain Robust
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Penumbra, Inc. (PEN - Free Report) reported an adjusted earnings per share (“EPS”) of 16 cents for the fourth quarter of 2022, beating the Zacks Consensus Estimate of 14 cents by 14.3%. The fourth-quarter adjusted EPS improved 60% year over year.
GAAP EPS for the quarter was 10 cents against the year-ago loss of 66 cents per share.
Revenues in Detail
Penumbra registered revenues of $221.2 million in the fourth quarter, up 8.4% year over year on a reported basis and up 10.5% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 1.7%.
Quarter in Details
Penumbra reports under two geographical segments — the United States and International — as well as under two product categories — Vascular and Neuro.
In the quarter under review, Penumbra recorded revenues of $157.1 million (71% of total revenues) in the United States, up 8.8% reportedly as well as at cc year over year. Internationally, sales improved 7.7% to $64.1 million. Excluding foreign currency impact, International sales were up 14.9%.
The company recorded revenues of $129.7 million from sales of vascular products during the fourth quarter, up 14.2% reportedly and up 15.4% at cc compared with the year-ago period. While U.S. sales improved 12.7% reportedly, International sales were up 23% year over year.
Sales of neuro products totaled $91.5 million, up 1.2% reportedly and up 4.4% at cc. U.S. neuro revenue improved 0.5% while international neuro revenue was up 1.9% compared with the year-ago quarter.
In the quarter under review, Penumbra’s gross profit improved 10.4% to $138.4 million. Gross margin expanded approximately 110 basis points (bps) to 62.6%.
Selling, general and administrative expenses rose 9.2% to $51.9 million. Research and development expenses were $35.8 million, up 34.2% year over year. Total operating expenses were $87.7 million, up 18.2% year over year.
Adjusted operating income in the reported quarter totaled $7.2 million, compared with $2.5 million in the year-ago period.
Full-Year Results
Penumbra reported total revenues of $847.1 million for full-year 2022, up 13.3% reportedly and up 15.5% at cc year over year. The company reported adjusted EPS of 16 cents for the period, declining 76.8% from the previous year’s record of 69 cents.
Financial Update
Penumbra exited fourth-quarter 2022 with cash and cash equivalents and marketable investments of $188 million compared with the previous quarter’s record of $184.4 million.
2023 Guidance Issued
Penumbra issued guidance for 2023 revenues. The company expects net sales to cross $1 billion during the year, implying growth of at least 18% from the previous year.
Our Take
Penumbra exited the fourth quarter of 2022 with decent results, wherein revenues and earnings beat estimates.
The company’s vascular and neuro product categories showed encouraging growth trends. It plans to launch the Lightning Flash product in the first quarter of 2023, which will likely boost its top line growth. Its robust estimate for total revenues in 2023 reflects continued demand for its products. However, currency movements continue to adversely impact the top line. The impact may become favorable in the second half of 2023.
Moreover, Penumbra’s ability to improve net gross margins and EPS amid ongoing inflationary pressures and supply-chain headwinds buoys optimism.
Zacks Rank and Other Key Picks
Currently, Penumbra carries a Zacks Rank #2 (Buy).
Some other stocks in the broader medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, carrying a Zacks Rank #2, reported first-quarter fiscal 2022 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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Penumbra (PEN) Q4 Earnings Top Estimates, Sales Remain Robust
Penumbra, Inc. (PEN - Free Report) reported an adjusted earnings per share (“EPS”) of 16 cents for the fourth quarter of 2022, beating the Zacks Consensus Estimate of 14 cents by 14.3%. The fourth-quarter adjusted EPS improved 60% year over year.
GAAP EPS for the quarter was 10 cents against the year-ago loss of 66 cents per share.
Revenues in Detail
Penumbra registered revenues of $221.2 million in the fourth quarter, up 8.4% year over year on a reported basis and up 10.5% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 1.7%.
Quarter in Details
Penumbra reports under two geographical segments — the United States and International — as well as under two product categories — Vascular and Neuro.
In the quarter under review, Penumbra recorded revenues of $157.1 million (71% of total revenues) in the United States, up 8.8% reportedly as well as at cc year over year. Internationally, sales improved 7.7% to $64.1 million. Excluding foreign currency impact, International sales were up 14.9%.
The company recorded revenues of $129.7 million from sales of vascular products during the fourth quarter, up 14.2% reportedly and up 15.4% at cc compared with the year-ago period. While U.S. sales improved 12.7% reportedly, International sales were up 23% year over year.
Sales of neuro products totaled $91.5 million, up 1.2% reportedly and up 4.4% at cc. U.S. neuro revenue improved 0.5% while international neuro revenue was up 1.9% compared with the year-ago quarter.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
Margin Trend
In the quarter under review, Penumbra’s gross profit improved 10.4% to $138.4 million. Gross margin expanded approximately 110 basis points (bps) to 62.6%.
Selling, general and administrative expenses rose 9.2% to $51.9 million. Research and development expenses were $35.8 million, up 34.2% year over year. Total operating expenses were $87.7 million, up 18.2% year over year.
Adjusted operating income in the reported quarter totaled $7.2 million, compared with $2.5 million in the year-ago period.
Full-Year Results
Penumbra reported total revenues of $847.1 million for full-year 2022, up 13.3% reportedly and up 15.5% at cc year over year. The company reported adjusted EPS of 16 cents for the period, declining 76.8% from the previous year’s record of 69 cents.
Financial Update
Penumbra exited fourth-quarter 2022 with cash and cash equivalents and marketable investments of $188 million compared with the previous quarter’s record of $184.4 million.
2023 Guidance Issued
Penumbra issued guidance for 2023 revenues. The company expects net sales to cross $1 billion during the year, implying growth of at least 18% from the previous year.
Our Take
Penumbra exited the fourth quarter of 2022 with decent results, wherein revenues and earnings beat estimates.
The company’s vascular and neuro product categories showed encouraging growth trends. It plans to launch the Lightning Flash product in the first quarter of 2023, which will likely boost its top line growth. Its robust estimate for total revenues in 2023 reflects continued demand for its products. However, currency movements continue to adversely impact the top line. The impact may become favorable in the second half of 2023.
Moreover, Penumbra’s ability to improve net gross margins and EPS amid ongoing inflationary pressures and supply-chain headwinds buoys optimism.
Zacks Rank and Other Key Picks
Currently, Penumbra carries a Zacks Rank #2 (Buy).
Some other stocks in the broader medical space that have announced quarterly results are AmerisourceBergen , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
AmerisourceBergen, carrying a Zacks Rank #2, reported first-quarter fiscal 2022 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.