Penumbra Among Well-Insulated Companies From Ongoing Tariff Dynamics, Says Analyst

Penumbra Inc PEN stock is trading higher after the company reported better-than-expected first-quarter 2025 earnings and reaffirmed the 2025 forecast.

The medical device company reported:

• Sales of $324.1 million, up 16.3% year over year (+16.9% in constant currency) and beating the consensus of $315.66 million.
• Adjusted EPS of 83 cents, beating the consensus of 67 cents.

Revenue from global thrombectomy products grew to $226.5 million in the first quarter of 2025, an increase of 20.7%, or 21.2%, in constant currency.

• U.S. Thrombectomy revenue of $187.9 million increased 25.0% year over year.

Also Read: PepsiCo CEO Warns Of Tariffs Led ‘Increase In Supply Chain Costs,’ Cuts Annual Profit Outlook

Revenue from global embolization and access products grew 7.3% of 8.1% in constant currency to $97.6 million.

• U.S. embolization and access products revenue increased 16.2% to 68.97 million

Operating income reached $40.4 million. Q1 net income was $39.2 million and adjusted EBITDA of $59.6 million, with 12.1% and 18.4% margins, respectively.

Guidance: Penumbra reaffirms its fiscal year 202 sales guidance of $1.34 billion to $1.36 billion, versus the consensus of $1.35 billion.

• The company is increasing guidance for the U.S. Thrombectomy franchise growth to 20% to 21% year over year from 19% to 20%.
• It reaffirms guidance for 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%-14% of revenue for 2025.

William Blair notes that since the company manufactures in the U.S. and gets 75% of its raw materials domestically, it expects little impact from tariffs this year. Also, with nearly 80% of its revenue coming from the U.S., the company has left out a $5 million contribution from China in its full-year outlook.

“We believe Penumbra is one of the most well-insulated companies from ongoing tariff dynamics across our coverage,” analyst Margaret Kaczor Andrew writes.

William Blair maintains an Outperform rating for Penumbra stock.

“Looking at the momentum thus far and management's thoughtful approach to guidance, we see further room for share upside as the company executes on its four-pronged strategy,” analyst Andrew adds.

Analyst Reaction:

• Stifel maintains a Buy rating on Penumbra, raising the price target from $301 to $318.
• Truist Securities maintains a Buy rating on Penumbra, raising the price target from $315 to $330.
• Wells Fargo maintains a rating of Penumbra as Overweight, raising the price target from $305 to $315.
• Baird maintains Penumbra with an Outperform, raising the price target from $316 to $325.
• UBS maintains a Buy rating on Penumbra and raises the price target from $320 to $330.

Price Action: PEN stock is up 6.37% at $296.53 at the last check Thursday.

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