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

Core Insights - Penumbra Inc reported better-than-expected first-quarter 2025 earnings and reaffirmed its 2025 forecast, leading to an increase in stock price [1][5] Financial Performance - Revenue from global thrombectomy products reached $226.5 million in Q1 2025, marking a 20.7% increase, or 21.2% in constant currency [1] - U.S. thrombectomy revenue was $187.9 million, reflecting a year-over-year increase of 25.0% [1] - Revenue from global embolization and access products grew to $97.6 million, a 7.3% increase, or 8.1% in constant currency [2] - U.S. embolization and access products revenue increased by 16.2% to $68.97 million [2] - Operating income was $40.4 million, with Q1 net income at $39.2 million and adjusted EBITDA of $59.6 million, resulting in margins of 12.1% and 18.4% respectively [2][6] - Total sales for the quarter were $324.1 million, up 16.3% year over year, exceeding the consensus estimate of $315.66 million [6] Guidance and Outlook - Penumbra reaffirmed its fiscal year 2025 sales guidance of $1.34 billion to $1.36 billion, aligning with the consensus of $1.35 billion [3] - The company increased its guidance for U.S. thrombectomy franchise growth to 20% to 21% year over year, up from the previous estimate of 19% to 20% [7] - Guidance for gross margin expansion is set at a minimum of 100 basis points in 2025, targeting over 67% for the full year, and operating margin expansion to 13%-14% of revenue for 2025 [7] Analyst Insights - William Blair noted that Penumbra is well-insulated from tariff impacts due to its domestic manufacturing and sourcing of 75% of raw materials in the U.S. [4] - Multiple analysts maintained positive ratings on Penumbra, with price targets raised: Stifel from $301 to $318, Truist from $315 to $330, Wells Fargo from $305 to $315, Baird from $316 to $325, and UBS from $320 to $330 [8]