Penumbra(PEN) ZACKS·2025-04-24 15:45Core Insights - Penumbra, Inc. reported first-quarter 2025 adjusted earnings per share (EPS) of 83 cents, exceeding the Zacks Consensus Estimate by 25.8% and showing a year-over-year improvement of 102.4% [1] - The company achieved revenues of $324.1 million, a 16.3% increase year over year, surpassing the Zacks Consensus Estimate by 2.7% [2] Revenue Breakdown - U.S. revenues were $256.9 million, accounting for 79.2% of total revenues, reflecting a 22.5% year-over-year increase [3] - International revenues decreased by 2.5% to $67.3 million, representing 20.8% of total revenues [3] Product Performance - Thrombectomy product sales reached $226.5 million, up 20.7% year over year [4] - Sales from Embolization and Access products totaled $97.6 million, increasing by 7.3% [4] Margin Analysis - Gross profit improved by 19.2% to $215.9 million, with a gross margin of 66.6%, an expansion of 160 basis points [5] - Adjusted operating profit was $40.4 million, compared to $12.1 million in the prior year, with an adjusted operating margin of 12.4%, an increase of 810 basis points [6] Financial Position - At the end of Q1 2025, Penumbra had cash and cash equivalents of $378.8 million, up from $340.1 million at the end of Q4 2024 [7] 2025 Outlook - The company reaffirmed its 2025 revenue guidance of $1.34-$1.36 billion and updated its U.S. thrombectomy franchise growth range to 20%-21% [8] - Expected gross margin expansion of at least 100 basis points to over 67% and operating margin expansion to 13%-14% of revenues for the full year [8] Market Position - The strong performance in the U.S. thrombectomy business is attributed to proprietary technology, enhancing market position [9] - The company is well-positioned to achieve a gross margin profile of over 70% by the end of 2026 [9] Macroeconomic Considerations - Due to the macroeconomic scenario in China, Penumbra has excluded a previously forecasted $5 million for the remainder of the year [10]