Examining the Future: Penumbra's Earnings Outlook

Penumbra PEN is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Penumbra to report an earnings per share (EPS) of $0.67.

The announcement from Penumbra is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

Last quarter the company beat EPS by $0.08, which was followed by a 12.03% increase in the share price the next day.

Here's a look at Penumbra's past performance and the resulting price change:

Stock Performance

Shares of Penumbra were trading at $270.64 as of April 21. Over the last 52-week period, shares are up 32.52%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Penumbra

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Penumbra.

Analysts have given Penumbra a total of 12 ratings, with the consensus rating being Outperform. The average one-year price target is $312.17, indicating a potential 15.35% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Globus Medical, Hologic and Masimo, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Globus Medical, with an average 1-year price target of $90.4, suggesting a potential 66.6% downside.
• Analysts currently favor an Neutral trajectory for Hologic, with an average 1-year price target of $81.0, suggesting a potential 70.07% downside.
• Analysts currently favor an Outperform trajectory for Masimo, with an average 1-year price target of $210.0, suggesting a potential 22.41% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Globus Medical, Hologic and Masimo, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Penumbra ranks highest in Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity. However, it has the lowest Consensus rating.

Unveiling the Story Behind Penumbra

Penumbra Inc develops and manufactures medical devices for the neurovascular and peripheral vascular markets. Its products are sold to hospitals and are developed for use by specialist physicians. Within the neurovascular business, the firm offers products for neurovascular access, ischemic stroke, neurovascular embolization, and neurosurgical tool markets. In the peripheral vascular business, the firm sells devices related to peripheral embolization and peripheral thrombectomy. It operates as one reportable segment and its business activity consists of the design, development, manufacturing and marketing of inventive medical products.

Penumbra's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Penumbra showcased positive performance, achieving a revenue growth rate of 10.83% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Penumbra's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.68%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Penumbra's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.99% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Penumbra's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.24%, the company showcases efficient use of assets and strong financial health.

Debt Management: Penumbra's debt-to-equity ratio is below the industry average at 0.19, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Penumbra visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.