Stroke Device Maker Penumbra Stock Surges On Earnings Beat, Analysts Boost Price Forecasts After Upbeat 2025 Outlook

Penumbra Inc PEN is trading higher after the company reported better-than-expected fourth-quarter earnings.

The medical device company reported:

• Adjusted EPS of 97 cents, up from 76 cents a year ago, beating the consensus of 90 cents.
• Sales of $315.52 million, up 10.8% year over year and beating the consensus of $311.55 million.
• Global thrombectomy product Q4 sales grew to $220.1 million, an increase of 15.4% in reported and constant currency
• U.S. thrombectomy product sales increased by 27.3%.
• Global embolization and access product revenues grew to $95.4 million in the fourth quarter of 2024, an increase of 1.6%, or 1.5% in constant currency
• U.S. embolization and access product revenue increased by 8.9%.
• Operating income reached $42.8 million, with an adjusted operating income of $48.6 million in the fourth quarter of 2024.
• Q4 net income reached $33.7 million, and adjusted EBITDA was $63.7 million, with margins of 10.7% and 19.8%, respectively.

Also Read: Penumbra Is Poised For Growth As Blood Clot Awareness Rises: Analyst

Penumbra Guidance

The company forecasts fiscal year 2025 sales of $1.34 billion-$1.36 billion versus a consensus of $1.36 billion.

Penumbra projects the U.S. thrombectomy franchise will grow 19% to 20% year over year, driven primarily by its computer-assisted vacuum thrombectomy products.

The company also expects gross margin expansion of at least 100 basis points in 2025, to more than 67% for the full year, and operating margin expansion to 13% to 14% of revenue for 2025.

Analyst reactions:

• Baird maintains the Outperform rating on Penumbra, raising the price target from $305 to $328.
• Needham reiterates Penumbra’s Hold rating.
• Morgan Stanley maintains Penumbra with an Equal-Weight, raising the price target from $240 to $260.
• Piper Sandler reiterates Penumbra with an Overweight, increasing the price target from $250 to $330.
• Wells Fargo also reaffirms Penumbra’s Overweight rating, with a price target of $305, up from $275.
• UBS analyst maintains Penumbra with a Buy and raises the price target from $305 to $320.
• Canaccord Genuity maintains the Buy rating on Penumbra and raises the price target from $323 to $340.
• Truist Securities reaffirms the Buy rating for Penumbra and raises the price target from $285 to $325.
• RBC Capital maintains Penumbra with an Outperform rating and raises the price target from $285 to $313.
• JP Morgan maintains Penumbra with an Overweight rating and raises the price target from $230 to $285.

Price Action: Penumbra stock is up 11.3% at $301.89 at last check Wednesday.

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