雅虎香港財經 Penumbra (PEN) Gains From Innovation, Mounting Costs Ail
Penumbra PEN is gaining traction in the international markets on strong customer uptake. Yet, an unfavorable currency movement and rising expenses are major dampeners for Penumbra. The stock carries a Zacks Rank #3 (Hold) at present.
Penumbra is in the early stages of its journey to bring the company’s proprietary thrombectomy technologies to patients in the United States and abroad. Its consistent revenue growth momentum is being driven by the extraordinary outcomes in patients treated with Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology.
In terms of pipeline, PEN plans to strongly focus on Flash and Bolt innovation in 2024 and beyond. In the fourth quarter, the company received the FDA clearance for Flash 2.0, the first of its new computer-assisted vacuum thrombectomy (CAVT) products, which are expected over the next 15 months. The next three pipeline products will expand CAVT's utility to other areas of the body. They will also enhance the safety, speed and simplicity with which CAVT tackles the variety of clot morphology.
In addition, Thunderbolt is progressing well in the THUNDER study, and the company expects to bring the advantages of CAVT to stroke thrombectomy as well, especially with its increasing market share in stroke aspiration catheters.
Combined with Flash and Bolt 7, Penumbra expects its CAVT portfolio to drive both market share and market growth in Deep vein thrombosis, Pulmonary embolism and arterial.
In terms of global expansion, Penumbra derives a significant portion of its revenues internationally (28.5% in 2023). The company expects to materially increase both revenues and profitability in its international business in the next three years and beyond. During this period, PEN expects to bring its franchise products like RED catheters and CAT RX, together with its most advanced products — Lightning Flash, Lightning Bolt 7 and Thunderbolt — to Penumbra global teams.
Penumbra, Inc. Price
Penumbra, Inc. price | Penumbra, Inc. Quote
Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe. PEN has plans to expand access to its most advanced thrombectomy products to its international vascular teams over the next few years. In addition, the company’s international teams and partners envision enormous potential to further expand PEN’s leadership in stroke intervention outside the United States, with SENDit and Thunderbolt, over the coming years. Among the recent developments, the company launched the RED catheter in 2023 for stroke and the first-generation computer-orchestrated thrombectomy products, Lightning 12 and 7 in Europe.
In 2024, Penumbra expects to be more focused on regulatory, reimbursement and market access initiatives to bring its CAVT products to patients outside the United States. The company expects its 2024 international thrombectomy revenues to grow modestly over 2023 levels and accelerate further in 2025.
On the flip side, while the pandemic has subsided, it continued to have a widespread impact on global supply chains and labor markets. These have resulted in cost inflation and raw material supply constraints, as well as an increase in employee turnover rates in certain jurisdictions. All these factors are laying significant pressure on Penumbra’s profitability.
In the fourth quarter of 2023, Penumbra reported a 17.9% rise in the cost of revenues. Selling, general and administrative expenses rose 12.4% year over year. Total operating expenses were up 13.7% from that recorded in the prior-year quarter.
Meanwhile, a significant portion of Penumbra’s sales and costs are exposed to changes in foreign exchange rates. In 2023, approximately 29% of the company's consolidated revenues came from the non-U.S. markets. PEN’s operations use multiple foreign currencies, including the euro and Japanese yen. Changes in those currencies relative to the U.S. dollar will impact its sales, cost of sales and expenses, and consequently, net income.
Key Picks
Some better-ranked stocks in the broader medical space are Cardinal Health CAH, DaVita DVA and Stryker SYK. Cardinal Health and DaVita sport a Zacks Rank #1 (Strong Buy) each, while Stryker carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health’s shares have risen 51.8% in the past year. Earnings estimates for the company have risen from $6.91 to $7.28 in fiscal 2024 and from $7.76 to $8.03 in fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.
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DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Estimates for Stryker’s 2024 EPS have increased from $11.79 to $11.86 in the past 30 days. Shares of the company have moved 32% north in the past year compared with the industry’s growth of 5.7%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.
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