Penumbra (PEN, Financial) has secured approval from the U.S. FDA for its Ruby XL System, which is now officially launched. This system stands out as the longest, largest, and softest coil available in the market. It is specifically engineered to assist medical professionals in achieving more effective embolization. The Ruby XL System aims to enhance procedural efficiency by potentially reducing radiation exposure and improving patient outcomes, particularly in cases involving large vessels and high-flow embolization.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Penumbra Inc (PEN, Financial) is $318.94 with a high estimate of $340.00 and a low estimate of $260.00. The average target implies an upside of 24.91% from the current price of $255.33. More detailed estimate data can be found on the Penumbra Inc (PEN) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Penumbra Inc's (PEN, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Penumbra Inc (PEN, Financial) in one year is $328.16, suggesting a upside of 28.52% from the current price of $255.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Penumbra Inc (PEN) Summary page.
PEN Key Business Developments
Release Date: April 23, 2025
- Total Revenue: $324.1 million, 16.3% year-over-year growth reported, 16.9% in constant currency.
- US Thrombectomy Revenue: $187.9 million, 25% year-over-year growth.
- Gross Margin: 66.6%, expanded 160 basis points from the prior year.
- Operating Income: $40.4 million, 12.4% of revenue, increased 550 basis points from the prior year.
- Adjusted EBITDA: $59.6 million, 18.4% of total revenue.
- Cash and Equivalents: $378.8 million, no debt, increased by $38.7 million sequentially.
- International Revenue: Decreased 2.5% reported, 0.1% in constant currency, impacted by a decline in China revenue.
- Embolization and Access Revenue: $97.6 million, 7.3% reported growth, 8.1% in constant currency.
- Research and Development Expenses: $22.1 million, 6.8% of revenue.
- SG&A Expenses: $153.5 million, 47.3% of revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Penumbra Inc (PEN, Financial) reported a strong revenue growth of 16.3% year-over-year, reaching $324.1 million in the first quarter of 2025.
- The US thrombectomy business saw a significant increase of 25% year-over-year, with the VTE franchise leading with a 42% growth.
- Gross margin improved by 160 basis points to 66.6%, with expectations to exceed 70% by the end of 2026.
- The company received FDA clearance for Ruby XL earlier than expected, indicating strong regulatory progress.
- Penumbra Inc (PEN) ended the quarter with a robust cash position of $378.8 million and no debt, highlighting strong financial health.
Negative Points
- International revenue decreased by 2.5% due to a significant decline in China revenue, which is expected to continue impacting the second quarter.
- The company faces macroeconomic headwinds in China, leading to the exclusion of $5 million from the revenue forecast.
- Operating expenses remain high, with SG&A expenses accounting for 47.3% of revenue, driven by investments in commercial and market access teams.
- The company anticipates flat or slightly lower gross margins in Q2 2025 due to expedited manufacturing investments for new product launches.
- Penumbra Inc (PEN) is cautious about raising guidance despite strong Q1 performance, reflecting a conservative approach amidst market uncertainties.
