Penumbra, Inc. PEN reported fourth-quarter 2024 adjusted earnings per share (EPS) of 97 cents, which surpassed the Zacks Consensus Estimate by 6.5%. Adjusted EPS improved 27.6% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
GAAP earnings were 86 cents per share compared with $1.38 in the prior-year period.
For the full year, adjusted earnings were $2.22 compared to the year-ago period’s figure of $2.09.
Penumbra registered revenues of $315.5 million in the reported quarter, up 10.8% year over year on a reported basis and at a constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 1%.
The company’s adjusted revenues (excluding the impact of the Italian government's payback provision pertaining to 2015 through 2024) totaled $321.3 million in the fourth quarter of 2024. The metric increased 13% in adjusted CER compared to the prior-year period.
For the full year, revenues were $1.19 billion, reflecting a 12.9% rise from the year-ago period. Adjusted revenues were $1.20 billion, up 13.4% in adjusted CER compared to 2023.
Following the earnings announcement, shares of PEN rose 8.6% in after-market trading yesterday.
Penumbra’s Q4 Results in Detail
The company reports under two geographical segments — the United States and International.
PEN recorded adjusted revenues of $247.9 million (77.2% of adjusted total revenues) in the United States, up 21.7% year over year on a reported basis as well as adjusted CER.
Adjusted revenues in the International segment dropped 16.5% on a reported basis (down 9.1% in adjusted CER) to $73.4 million (22.8% of adjusted total revenues).
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
The company currently reports its product revenues under two categories — Thrombectomy, and Embolization and Access.
The company registered adjusted revenues of $222.7 million from sales of Thrombectomy products, up 15.4% on a reported basis and 16.9% in adjusted CER.
Adjusted sales of Embolization and Access products totaled $98.6 million, up 1.6% on a reported basis and 5.1% in adjusted CER.
PEN’s Q4 Margin Performance
In the reported quarter, Penumbra’s gross profit improved 12.7% year over year to $210.7 million. The gross margin expanded 110 basis points to 66.8% despite a 7.3% rise in the cost of revenues. Meanwhile, the company-provided adjusted gross profit (excluding the Italian payback measure) was $216.5 million, up 15.6% year over year.
Selling, general and administrative expenses rose 13.8% to $147.9 million. Research and development expenses totaled $20 million, down 8.8% year over year. Total operating expenses were $168 million, up 10.5% year over year. Meanwhile, the adjusted operating margin was 13.6%, a 125 bps expansion year over year.
PEN’s Financial Update
Penumbra exited the fourth quarter of 2024 with cash and cash equivalents and marketable investments of $340.1 million compared with $289.2 million at the end of 2023.
Penumbra Initiates 2025 Guidance
The company projects total revenues for 2025 in the range of $1.34-$1.36 billion, implying year-over-year growth of 12% to 14%. The U.S. thrombectomy franchise is expected to grow 19%-20% year over year, driven primarily by its computer-assisted vacuum thrombectomy (CAVT) products.
The Zacks Consensus Estimate for revenues is currently pegged at $1.37 billion.
Penumbra anticipates gross margin expansion of at least 100 bps to more than 67% and operating margin expansion to a range of 13%-14% of revenues for full-year 2025.
Our Take on PEN
Penumbra exited the fourth quarter of 2024 with better-than-expected earnings and revenues. The company’s U.S. thrombectomy business continued to fuel growth, with its comprehensive and proprietary CAVT portfolio maintaining momentum throughout the quarter and closing the year in a strong position.
Penumbra commenced the commercial rollout of Lightning Bolt 12, bringing its proprietary modulated aspiration technology to the venous anatomy and larger arteries, offering the latest generation CAVT solution for these vessel sizes. Early feedback has been positive, with further expansion planned in 2025. Expansion of both margins is also highly encouraging.
Meanwhile, International revenues registered a decline to a reduction in China revenues.
PEN’s Zacks Rank and Key Picks
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-RadLaboratories BIO.
ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.
Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.
CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.
Bio-Rad Laboratories, carrying a Zacks Rank #2, posted a third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.
BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.
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