Penumbra Q1 Earnings & Revenues Top Estimates, Stock Up, Margins Expand

Penumbra, Inc. PEN reported first-quarter 2025 adjusted earnings per share (EPS) of 83 cents, which surpassed the Zacks Consensus Estimate by 25.8%. Adjusted EPS improved 102.4% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).GAAP earnings were $1 per share compared with 28 cents in the prior-year period.PEN Q1 RevenuesPenumbra registered revenues of $324.1 million in the reported quarter, up 16.3% year over year on a reported basis and 16.9% constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 2.7%.Following the earnings announcement, PEN shares rose 5.3% in after-market trading yesterday.Penumbra’s Q1 Results in DetailThe company reports under two geographical segments — the United States and International.PEN recorded revenues of $256.9 million (79.2% total revenues) in the United States, up 22.5% year over year on a reported basis.Revenues in the International segment dropped 2.5% on a reported basis (down 0.1% in CER) to $67.3 million (20.8% of total revenues).Penumbra, Inc. Price, Consensus and EPS Surprise Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. QuoteThe company currently reports its product revenues under two categories — Thrombectomy, and Embolization and Access.The company registered revenues of $226.5 million from sales of Thrombectomy products, up 20.7% on a reported basis and 21.2% in adjusted CER.Sales of Embolization and Access products totaled $97.6 million, up 7.3% on a reported basis and 8.1% in CER.PEN’s Q1 Margin PerformanceIn the reported quarter, Penumbra’s gross profit improved 19.2% year over year to $215.9 million. The gross margin expanded 160 basis points (bps) to 66.6% despite an 11% rise in the cost of revenues.Selling, general and administrative expenses rose 6.3% to $153.5 million. Research and development expenses totaled $22 million, down 10.4% year over year. Adjusted operating profit came to be $40.4 million compared to $12.1 million in the comparable 2024 period. Meanwhile, the adjusted operating margin expanded 810 bps year over year to 12.4%.PEN’s Financial UpdatePenumbra exited the first quarter of 2025 with cash and cash equivalents and marketable investments of $378.8 million compared with $340.1 million at the end of the fourth quarter of 2024. Penumbra’s 2025 OutlookThe company reaffirmed its 2025 revenue guidance, expected in the range of $1.34-$1.36 billion. Meanwhile, Penumbra updated its U.S. thrombectomy franchise growth range to 20%-21% from the previous 19%-20% range year over year. The Zacks Consensus Estimate for revenues is currently pegged at $1.35 billion.Penumbra continues to expect 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 PENPenumbra exited the first quarter of 2025 with earnings and revenues beating estimates. The performance reflects ongoing momentum across the core U.S. thrombectomy business, with the proprietary computer-assisted vacuum thrombectomy (CAVT) technology further enhancing its strong market position. In the U.S. peripheral business, the strong results underscore Lightning Flash 2.0's durable growth and momentum in Venous Thromboembolism (VTE). Expansion of both margins in the quarter is highly encouraging. Penumbra is well-positioned to achieve a gross margin profile of more than 70% by the end of 2026.Meanwhile, given the macroeconomic scenario in China, Penumbra has excluded the previously forecasted $5 million for the remainder of the year.PEN’s Zacks Rank and Key PicksCurrently, Penumbra carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.4%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks