雅虎香港財經 Penumbra (PEN) Q4 Earnings Top Estimates, Margins Increase
Penumbra, Inc. PEN reported fourth-quarter 2023 adjusted earnings per share (“EPS”) of 76 cents, which beat the Zacks Consensus Estimate by 7%. The company had recorded an adjusted EPS of 16 cents in the year-ago period.
GAAP EPS was $1.38 per share compared to 10 cents in the prior-year quarter.
For the full year, adjusted earnings were $2.09 per share, compared to the year-ago period’s figure of 16 cents.
Revenues in Detail
Penumbra registered revenues of $284.7 million in the reported quarter, up 28.7% year over year on a reported basis and 27.9% at a constant exchange rate or CER. The figure missed the Zacks Consensus Estimate by 1%.
Total revenues for 2023 were $1.06 billion, reflecting a 25% rise from the year-ago period.
Quarter in Details
The company reports under two geographical segments — United States and International.
In the fourth quarter of 2023, Penumbra made changes to its product revenue categories to provide investors with more meaningful information to understand the performance of its business and strategic direction. The Company will now report its product revenues in the following categories: Thrombectomy and Embolization and Access. The Company is also providing its neuro and vascular product revenue details for the last time.
PEN recorded revenues of $203.7 million (71.5% of total revenues) in the United States, up 29.6% on a reported basis as well as at CER year over year.
Sales improved 26.4% to $80.9 million in the International segment. Excluding foreign currency impact, the unit’s sales were up 23.5% year over year.
The company registered revenues of $190.8 million from sales of Thrombectomy products, up 42.4% reportedly and 41.6% at CER from the prior-year level.
Sales of Embolization and Access products totaled $93.9 million, up 7.6% on a reported basis and 6.7% at CER.
The company registered revenues of $185.5 million from sales of vascular products, up 43.1% reportedly and 42.7% at CER from the prior-year level. There was 46.4% year-over-year growth in U.S. vascular thrombectomy.
Sales of euro products totaled $99.2 million, up 8.3% on a reported basis and 6.9% at CER.
Margin Trend
In the reported quarter, Penumbra’s gross profit improved 35.1% to $186.9 million. Gross margin expanded 311 basis points to 65.7% despite a 17.9% rise in the cost of revenues.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
Selling, general and administrative expenses rose 12.4% to $130 million. Research and development expenses totaled $21.9 million, up 22.1% year over year. Total operating expenses came in at $151.9 million, up 13.7% year over year.
Adjusted operating margin of 12.3% marked a 1011-basis point expansion from the prior-year quarter’s figure.
Financial Update
Penumbra exited 2023 with cash and cash equivalents and marketable investments of $167.5 million compared with $69.9 million at 2022-end.
2024 Guidance
The company projects total revenues for 2024 to be in the range of $1.23-$1.27 billion, suggesting year-over-year growth of 16-20% from 2023 levels. It also projects the U.S. thrombectomy franchise to increase 27-30% year over year, primarily driven by its Computer-Assisted Vacuum Thrombectomy (CAVT) products.
Our Take
Penumbra exited 2023 on a mixed note, with earnings beating estimates and revenues missing the same.
The company’s vascular and neuro product categories showed encouraging growth trends. U.S. thrombectomy was the company’s primary growth driver in the fourth quarter.
Its robust estimate for 2023 revenues reflects continued demand for its products. Strong uptake following the launch of Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology accelerated top-line growth. Moreover, Penumbra’s ability to improve margins and EPS amid ongoing inflationary pressures and supply-chain headwinds buoy optimism. However, escalating costs remain a concern.
Zacks Rank and Stocks to Consider
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation SYK, Cencora, Inc. COR and Cardinal Health CAH.
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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