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) Q1 Earnings Top Estimates, Sales Remain Robust
Read MoreHide Full Article
Penumbra, Inc. (PEN - Free Report) reported first-quarter adjusted earnings per share (“EPS”) of 23 cents, which beat the Zacks Consensus Estimate of 11 cents by 109.1%. The company recorded an adjusted loss of 1 cent per share in the year-ago period.
GAAP EPS was 22 cents compared to breakeven in the prior-year quarter.
Revenues in Detail
Penumbra registered revenues of $241.4 million in the reported quarter, up 18.4% year over year on a reported basis and up 19.7% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 4.7%.
Quarter in Details
The company reports under two geographical segments — United States and International — as well as under two product categories — Vascular and Neuro.
PEN recorded revenues of $171.9 million (71% of total revenues) in the United States, up 19.1% reportedly as well as at cc year over year.
Sales improved 16.7% to $69.5 million in the International segment. Excluding foreign currency impact, the unit’s sales were up 19.7% year over year.
The company registered revenues of $142.8 million from sales of vascular products, up 16.3% reportedly and 17.2% at cc from the prior-year level. While U.S. sales improved 23% reportedly.
Sales of neuro products totaled $98.5 million, up 21.5% reportedly and 23.4% at cc
Margin Trend
In the reported quarter, Penumbra’s gross profit improved 18.6% to $151.1 million. Gross margin expanded approximately 10 basis points to 62.6%.
Selling, general and administrative expenses rose 11% to $123.1 million. Research and development expenses totaled $20 million, down 2.8% year over year. Total operating expenses came in at $143.1 million, up 8.8% from that recorded in the prior-year quarter.
Adjusted operating income amounted to $10.4 million against the prior-year quarter’s reported loss of $2.3 million.
Penumbra exited first-quarter 2022 with cash and cash equivalents and marketable investments of $199.1 million compared with the previous quarter’s record of $188 million.
2023 Guidance Raised
Penumbra issued updated guidance for 2023 revenues. The company expects net sales in the range of $1.04-$1.06 billion, implying a 23-25% improvement year over year. Previously, PEN anticipated sales to exceed $1 billion during 2023. It also expects the vascular business to grow slightly above the 23-25% range and the neuro business to remain below this guidance.
Our Take
Penumbra exited the first quarter of 2023 with encouraging results, wherein both revenues and earnings beat estimates.
The company’s vascular and neuro product categories showed encouraging growth trends. Its robust estimate for 2023 revenues reflects continued demand for its products. Strong uptake following the launch of Lightning Flash during the first quarter accelerated topline growth. However, currency movements continue to adversely impact the top line. However, the impact is expected to 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 Stocks to Consider
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Intuitive Surgical reported first-quarter 2023 adjusted EPS of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Johnson & Johnson reported first-quarter 2023 adjusted EPS of $2.68, which beat the Zacks Consensus Estimate by 6.8%. Revenues of $24.75 billion outpaced the consensus mark by 5%.
Johnson & Johnson has a long-term estimated growth rate of 5.5%. JNJ’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.9%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Penumbra (PEN) Q1 Earnings Top Estimates, Sales Remain Robust
Penumbra, Inc. (PEN - Free Report) reported first-quarter adjusted earnings per share (“EPS”) of 23 cents, which beat the Zacks Consensus Estimate of 11 cents by 109.1%. The company recorded an adjusted loss of 1 cent per share in the year-ago period.
GAAP EPS was 22 cents compared to breakeven in the prior-year quarter.
Revenues in Detail
Penumbra registered revenues of $241.4 million in the reported quarter, up 18.4% year over year on a reported basis and up 19.7% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 4.7%.
Quarter in Details
The company reports under two geographical segments — United States and International — as well as under two product categories — Vascular and Neuro.
PEN recorded revenues of $171.9 million (71% of total revenues) in the United States, up 19.1% reportedly as well as at cc year over year.
Sales improved 16.7% to $69.5 million in the International segment. Excluding foreign currency impact, the unit’s sales were up 19.7% year over year.
The company registered revenues of $142.8 million from sales of vascular products, up 16.3% reportedly and 17.2% at cc from the prior-year level. While U.S. sales improved 23% reportedly.
Sales of neuro products totaled $98.5 million, up 21.5% reportedly and 23.4% at cc
Margin Trend
In the reported quarter, Penumbra’s gross profit improved 18.6% to $151.1 million. Gross margin expanded approximately 10 basis points to 62.6%.
Selling, general and administrative expenses rose 11% to $123.1 million. Research and development expenses totaled $20 million, down 2.8% year over year. Total operating expenses came in at $143.1 million, up 8.8% from that recorded in the prior-year quarter.
Adjusted operating income amounted to $10.4 million against the prior-year quarter’s reported loss of $2.3 million.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
Financial Update
Penumbra exited first-quarter 2022 with cash and cash equivalents and marketable investments of $199.1 million compared with the previous quarter’s record of $188 million.
2023 Guidance Raised
Penumbra issued updated guidance for 2023 revenues. The company expects net sales in the range of $1.04-$1.06 billion, implying a 23-25% improvement year over year. Previously, PEN anticipated sales to exceed $1 billion during 2023. It also expects the vascular business to grow slightly above the 23-25% range and the neuro business to remain below this guidance.
Our Take
Penumbra exited the first quarter of 2023 with encouraging results, wherein both revenues and earnings beat estimates.
The company’s vascular and neuro product categories showed encouraging growth trends. Its robust estimate for 2023 revenues reflects continued demand for its products. Strong uptake following the launch of Lightning Flash during the first quarter accelerated topline growth. However, currency movements continue to adversely impact the top line. However, the impact is expected to 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 Stocks to Consider
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Some other better-ranked stocks to consider from the broader medical space that have announced their quarterly results are Intuitive Surgical (ISRG - Free Report) , Johnson & Johnson (JNJ - Free Report) and Edwards Lifesciences (EW - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical reported first-quarter 2023 adjusted EPS of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Johnson & Johnson reported first-quarter 2023 adjusted EPS of $2.68, which beat the Zacks Consensus Estimate by 6.8%. Revenues of $24.75 billion outpaced the consensus mark by 5%.
Johnson & Johnson has a long-term estimated growth rate of 5.5%. JNJ’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.9%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.