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Penumbra (PEN) Q1 Earnings Lag Estimates, Margins Expand
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Penumbra, Inc. (PEN - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate by a penny. However, adjusted EPS improved 78.3% year over year.
GAAP EPS was 28 cents per share, reflecting 27.3% growth from the prior-year quarter.
Revenues in Detail
Penumbra registered revenues of $278.7 million in the reported quarter, up 15.4% year over year on a reported basis and 15.2% at a constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 1.4%.
Quarter in Details
The company reports under two geographical segments — United States and International.
PEN recorded revenues of $209.6 million (75.2% of total revenues) in the United States, up 22% on a reported basis as well as at CER year over year.
Sales declined 0.7% to $69 million in the International segment. Excluding foreign currency impact, the unit’s sales were down 1.7% year over year.
On the fourth-quarter 2023 earnings call, Penumbra announced changes to its product revenue categories to provide investors with more meaningful information to understand the performance of its business and strategic direction. Per the changes, the company currently reports its product revenues in the following categories — Thrombectomy and Embolization and Access.
The company registered revenues of $187.7 million from sales of Thrombectomy products, up 29.5% on a reported basis and 29.3% at CER from the prior-year level.
Sales of Embolization and Access products totaled $90.9 million, down 5.7% on a reported basis and down 6% at CER.
In the reported quarter, Penumbra’s gross profit improved 19.9% to $181.1 million. Gross margin expanded 242 basis points to 65% despite a 7.9% rise in the cost of revenues.
Selling, general and administrative expenses rose 17.3% to $144.4 million. Research and development expenses totaled $24.6 million, up 23.2% year over year. Total operating expenses were $169 million, up 18.2% year over year.
Adjusted operating margin of 4.3% marked a 103-basis point expansion from the prior-year quarter’s figure.
Financial Update
Penumbra exited the first quarter of 2024 with cash and cash equivalents and marketable investments of $223.1 million compared with $167.5 million at 2023-end.
2024 Guidance Reaffirmed
The company reiterated total revenue guidance for 2024 in the range of $1.23-$1.27 billion, suggesting year-over-year growth of 16-20% from the 2023 level. The Zacks Consensus Estimate is currently pegged at $1.24 billion.
It also reaffirmed the U.S. thrombectomy franchise to increase 27-30% year over year, primarily driven by its Computer-Assisted Vacuum Thrombectomy (CAVT) products.
Gross margin and adjusted operating margin guidance were reiterated in the range of 100 to 150 basis points expansion and 100 to 200 basis points expansion, respectively, for the full year.
Our Take
Penumbra posted mixed first-quarter 2024 results, with earnings missing estimates and revenues beating the same. However, the company reported strong year-over-year improvement for these two components.
The company’s Thrombectomy product category showed encouraging growth trends, reflecting strong momentum in CAVT products.
On the flip side, revenues from the Embolization and Access business suffered due to an overall decline in international markets.
Zacks Rank and Other Stocks to Consider
Currently, Penumbra carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared with the industry’s 15.7%. The company delivered an average earnings surprise of 2.8% for the trailing four quarters.
Encompass Health, carrying a Zacks Rank #2, reported first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
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Penumbra (PEN) Q1 Earnings Lag Estimates, Margins Expand
Penumbra, Inc. (PEN - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate by a penny. However, adjusted EPS improved 78.3% year over year.
GAAP EPS was 28 cents per share, reflecting 27.3% growth from the prior-year quarter.
Revenues in Detail
Penumbra registered revenues of $278.7 million in the reported quarter, up 15.4% year over year on a reported basis and 15.2% at a constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 1.4%.
Quarter in Details
The company reports under two geographical segments — United States and International.
PEN recorded revenues of $209.6 million (75.2% of total revenues) in the United States, up 22% on a reported basis as well as at CER year over year.
Sales declined 0.7% to $69 million in the International segment. Excluding foreign currency impact, the unit’s sales were down 1.7% year over year.
On the fourth-quarter 2023 earnings call, Penumbra announced changes to its product revenue categories to provide investors with more meaningful information to understand the performance of its business and strategic direction. Per the changes, the company currently reports its product revenues in the following categories — Thrombectomy and Embolization and Access.
The company registered revenues of $187.7 million from sales of Thrombectomy products, up 29.5% on a reported basis and 29.3% at CER from the prior-year level.
Sales of Embolization and Access products totaled $90.9 million, down 5.7% on a reported basis and down 6% at CER.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
Margin Trend
In the reported quarter, Penumbra’s gross profit improved 19.9% to $181.1 million. Gross margin expanded 242 basis points to 65% despite a 7.9% rise in the cost of revenues.
Selling, general and administrative expenses rose 17.3% to $144.4 million. Research and development expenses totaled $24.6 million, up 23.2% year over year. Total operating expenses were $169 million, up 18.2% year over year.
Adjusted operating margin of 4.3% marked a 103-basis point expansion from the prior-year quarter’s figure.
Financial Update
Penumbra exited the first quarter of 2024 with cash and cash equivalents and marketable investments of $223.1 million compared with $167.5 million at 2023-end.
2024 Guidance Reaffirmed
The company reiterated total revenue guidance for 2024 in the range of $1.23-$1.27 billion, suggesting year-over-year growth of 16-20% from the 2023 level. The Zacks Consensus Estimate is currently pegged at $1.24 billion.
It also reaffirmed the U.S. thrombectomy franchise to increase 27-30% year over year, primarily driven by its Computer-Assisted Vacuum Thrombectomy (CAVT) products.
Gross margin and adjusted operating margin guidance were reiterated in the range of 100 to 150 basis points expansion and 100 to 200 basis points expansion, respectively, for the full year.
Our Take
Penumbra posted mixed first-quarter 2024 results, with earnings missing estimates and revenues beating the same. However, the company reported strong year-over-year improvement for these two components.
The company’s Thrombectomy product category showed encouraging growth trends, reflecting strong momentum in CAVT products.
On the flip side, revenues from the Embolization and Access business suffered due to an overall decline in international markets.
Zacks Rank and Other Stocks to Consider
Currently, Penumbra carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared with the industry’s 15.7%. The company delivered an average earnings surprise of 2.8% for the trailing four quarters.
Encompass Health, carrying a Zacks Rank #2, reported first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.