Core Insights - Penumbra reported revenue of $299.4 million for the quarter ended June 2024, reflecting a year-over-year increase of 14.5% [8] - The earnings per share (EPS) for the same quarter was $0.64, up from $0.43 in the previous year, indicating a strong performance [8] - The revenue surprise was +0.28% over the Zacks Consensus Estimate of $298.58 million, while the EPS surprise was +14.29% compared to the consensus estimate of $0.56 [2] Revenue Performance - The revenue from the Embolization and Access segment was reported at $81.22 million, exceeding the average estimate of $74.90 million by two analysts, representing an 8.7% increase year-over-year [4] - Revenue from the Thrombectomy segment was $95.90 million, slightly below the average estimate of $98.62 million based on four analysts [5] - Overall revenue performance showed a year-over-year change of +16.8% compared to the two-analyst average estimate of $223.85 million, which was reported at $218.18 million [3] Market Performance - Over the past month, Penumbra shares have returned +0.7%, outperforming the Zacks S&P 500 composite's +0.1% change [7] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [7]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $299.4 million, a year-over-year increase of 14.5% as reported and 14.7% on a constant currency basis [15][35] - Non-GAAP gross margin expanded to 65.5%, up 170 basis points year-over-year [16][42] - Non-GAAP operating income was $31.7 million, representing 10.6% of revenue, an increase of 280 basis points year-over-year [16][44] - Adjusted EBITDA was $46.3 million or 15.5% of total revenue compared to 14.6% in the same quarter last year [45] Business Line Data and Key Metrics Changes - U.S. thrombectomy revenue grew 25% year-over-year to $153.7 million, with a 29.8% increase in the first half of 2024 [15] - International thrombectomy revenue was $49.8 million, growing 26% year-over-year [15] - Global embolization and access revenue declined slightly to $95.9 million, but improved sequentially by 5% [16][41] Market Data and Key Metrics Changes - U.S. region reported growth of 16.8%, driven by 24.9% growth in the thrombectomy franchise [39] - International regions increased 8.7% reported and 9.4% in constant currency, primarily driven by thrombectomy revenue growth [39] Company Strategy and Development Direction - The company is transitioning from focusing solely on treatable patients to addressing the majority of the 125 million annual thrombectomy patients in the U.S. over the next five-plus years [18] - The launch of new products, including Flash 2.0 and Lightning Bolt, is expected to enhance market share and growth in both U.S. and international markets [33][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's innovation and market position, anticipating continued growth in thrombectomy, arterial, and stroke markets in 2025 [32][33] - The company is taking a more conservative approach to guidance, reflecting a more complex business environment with multiple variables [54][92] Other Important Information - A one-time non-cash accounting charge of $110.3 million was taken for the Immersive Healthcare business, with expectations to reduce ongoing operating expenses by over $20 million [36][31] - The company ended Q2 with cash and marketable securities of $339.7 million and no debt, indicating strong operational profitability [46] Q&A Session Summary Question: Can you elaborate on the new guidance philosophy? - Management acknowledged the evolution of the company and the need for a more conservative guidance approach due to increased complexity in operations [52][54] Question: What are the expectations for U.S. thrombectomy growth in 2025? - Management refrained from providing specific quantitative guidance but indicated optimism based on the absence of transient headwinds and new product launches [56][58] Question: What drove the strong OUS thrombectomy numbers? - Management noted that the OUS thrombectomy business performed within expected ranges without any unique factors impacting the quarter [72] Question: How do you plan to address competitive dynamics? - Management emphasized the importance of product safety and effectiveness, noting that physicians are increasingly recognizing these factors in their treatment choices [95][96]

Penumbra (PEN) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this medical device maker would post earnings of $0.42 per share when it actually produced earnings of $0.41, delivering a surprise of -2.38%. Over the last four quarters, the co ...

Table of Contents Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted p ...

Revenue Performance - Revenue for the second quarter of 2024 was $299.4 million, an increase of 14.5% compared to the second quarter of 2023[13]. - U.S. thrombectomy revenue reached $153.7 million, reflecting a 24.9% increase year-over-year[2]. - Revenue for Q2 2024 was $299,403,000, a 14.5% increase from $261,499,000 in Q2 2023[25]. - Thrombectomy revenue for the first half of 2024 was $391,205,000, a 27.2% increase from $307,483,000 in the same period of 2023[36]. - Total revenue for the first half of 2024 reached $578,058,000, up 14.9% from $502,897,000 in the first half of 2023[36]. - Revenue from the Thrombectomy segment was $203.50 million for the three months ended June 30, 2024, up 25.2% from $162.50 million in the prior year[60]. - The company reported a 19.3% increase in revenue from the United States, totaling $427.82 million for the six months ended June 30, 2024, compared to $358.65 million in 2023[58]. - International revenue for the same six-month period was $150.23 million, a 4.2% increase from $144.25 million in 2023[58]. Profitability and Expenses - Adjusted EBITDA for the second quarter of 2024 was $46.3 million, representing an adjusted EBITDA margin of 15.5%[3]. - Gross profit for the second quarter was $162.8 million, or 54.4% of total revenue, with non-GAAP gross profit at $196.2 million, or 65.5%[4]. - Net loss for Q2 2024 was $60,200,000, compared to a net income of $18,960,000 in Q2 2023, resulting in a diluted EPS of $(1.55) versus $0.48[31]. - Adjusted EBITDA for Q2 2024 was $46,324,000, representing a margin of 15.5%, compared to $38,230,000 and a margin of 14.6% in Q2 2023[33]. - The company reported an inventory impairment charge of $33,359,000 in Q2 2024, impacting gross profit[49]. - Non-GAAP net income for Q2 2024 was $25,208,000, compared to $16,837,000 in Q2 2023, with a non-GAAP diluted EPS of $0.64 versus $0.43[31]. Operating Expenses - Loss from operations was $81.0 million, including $110.3 million in impairment charges related to immersive healthcare assets[5]. - Total operating expenses for the second quarter were $243.8 million, or 81.4% of total revenue[16]. - Operating expenses increased significantly to $243,790,000 in Q2 2024 from $148,972,000 in Q2 2023, primarily due to a $76,945,000 impairment charge[25]. - Penumbra, Inc. reported GAAP operating expenses of $243.79 million for the three months ended June 30, 2024, compared to $148.97 million for the same period in 2023, reflecting a 63.6% increase[51]. - Non-GAAP operating expenses for the same period were $164.47 million, up from $146.59 million, representing a 12.1% increase[51]. - The company incurred an impairment charge of $76.95 million during the three months ended June 30, 2024[51]. - Non-recurring litigation-related expenses amounted to $4.82 million for the six months ended June 30, 2024[51]. Guidance and Future Expectations - The company updated its full-year 2024 revenue guidance to a range of $1,180 million to $1,200 million, a reduction of $60 million from previous guidance[17]. - U.S. thrombectomy growth for the full year 2024 is now expected to be 23-25% year-over-year[6]. Research and Development - Research and development expenses for the second quarter were $24.9 million, up from $21.5 million in the same period last year[16]. Company Overview - The company operates in over 100 countries, focusing on innovative therapies for challenging medical conditions[41].

U.S. thrombectomy revenue of $153.7 million in the second quarter of 2024 increased 24.9% compared to the second quarter of 2023. Cash and marketable investments increased $26.2 million in the second quarter of 2024 compared to the first quarter of 2024 driven by an increase in non-GAAP profitability and improvements in working capital. Updated Full Year 2024 Financial Outlook 1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures. Constant Currency. The Company's co ...

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores in identifying stocks with high potential for market outperformance over the next 30 days [2][10]. Group 1: Zacks Rank and Style Scores - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to facilitate portfolio building [9]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [15]. - The Style Scores categorize stocks into Value, Growth, and Momentum, with each stock receiving a rating from A to F based on its characteristics [17][18]. Group 2: Penumbra (PEN) Analysis - Penumbra is highlighted as a stock to watch, holding a 2 (Buy) rating on the Zacks Rank and a VGM Score of B [23]. - The company has seen a 0.7% increase in shares over the past four weeks, indicating positive momentum [6]. - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.01 to $2.88 per share, with an average earnings surprise of 26% [24]. Group 3: Investment Strategies - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [10][11]. - The VGM Score combines Value, Growth, and Momentum characteristics to identify stocks with the most attractive profiles [3].

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $298.58 million, up 14.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.48% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reasses ...

Core Insights - The article discusses the Zacks Rank and Style Scores, which are tools designed to help investors identify stocks with high potential for outperforming the market [1][15]. Zacks Rank - Stocks are rated on a scale from 1 (Strong Buy) to 5 (Strong Sell), with 1 and 2 stocks having the highest probability of success [11][12]. - The Zacks Rank utilizes earnings estimate revisions to guide investors in creating successful portfolios [9][18]. Style Scores - The Style Scores are categorized into Value, Growth, and Momentum, each focusing on different investment strategies [5][6][7]. - The Value Style Score identifies undervalued stocks using financial ratios, while the Growth Style Score focuses on a company's future earnings potential [5][6]. - The Momentum Style Score helps investors capitalize on price trends, indicating optimal times to invest based on recent price changes [7]. - The VGM Score combines all three Style Scores, providing a comprehensive assessment of a stock's attractiveness [8]. Stock Highlight: Penumbra (PEN) - Penumbra is rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, indicating strong potential for growth [13][21]. - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate to $2.88 per share, reflecting a 26% average earnings surprise [14][20]. - The company is projected to achieve year-over-year earnings growth of 37.8% for the current fiscal year, making it an appealing option for growth investors [20][21].

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Penumbra (PEN) shares ended the last trading session 3.3% higher at $203.22. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.8% gain over the past four weeks. This medical device maker is expected to post quarterly earnings of $0.56 per share in its upcoming report, which repres ...