Penumbra Stock Up Post Q3 Earnings & Revenue Beat, Margins Expand

Penumbra, Inc. PEN reported third-quarter 2025 adjusted earnings per share (EPS) of 97 cents, which surpassed the Zacks Consensus Estimate by 7.78%. Adjusted EPS improved 14.1% year over year.GAAP earnings were $1.17 per share compared with 75 cents in the prior-year period.PEN’s Q3 RevenuesPenumbra registered revenues of $354.7 million in the reported quarter, up 17.8% year over year on a reported basis and 16.9% constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 4.12%.Since the announcement on Nov. 5, PEN shares have risen 20%, closing at $270.55 yesterday.Penumbra’s Q3 Results in DetailThe company reports under two geographical segments — the United States and International.PEN recorded revenues of $275 million (77.5% total revenues) in the United States, up 21.5% year over year on a reported basis.Penumbra, Inc. Price, Consensus and EPS Surprise Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. QuoteRevenues in the International segment increased 6.6% on a reported basis (up 3% in CER) to $79.7 million (22.5% of total revenues).The company currently reports its product revenues under two categories — Thrombectomy, and Embolization and Access.The company registered revenues of $236.4 million from sales of Thrombectomy products, up 15.8% on a reported basis and 15.1% in CER.Sales of Embolization and Access products totaled $118.3 million, up 22% on a reported basis and 20.8% in CER.PEN’s Q3 Margin PerformanceIn the reported quarter, Penumbra’s gross profit improved 20% year over year to $240.4 million. The gross margin expanded 124 basis points (bps) to 67.8% despite a 13.4% rise in the cost of revenues.Selling, general and administrative expenses rose 20.9% to $168.9 million. Research and development expenses totaled $22.7 million, down 10% year over year. Adjusted operating profit came in at $48.8 million compared to $35.4 million in the comparable 2024 period. Meanwhile, the adjusted operating margin expanded 202 bps year over year to 13.8%.PEN’s Financial UpdatePenumbra exited the third quarter of 2025 with cash and cash equivalents and marketable investments of $470.3 million compared with $424.6 million at the end of the second quarter.  Penumbra’s 2025 OutlookFor the full year, the company expects revenues to be $1.375 million-$1.380 million, suggesting 15%-16% growth over 2024. The Zacks Consensus Estimate for revenues is currently pegged at $1.38 billion.Penumbra continues to expect gross margin expansion of at least 100 bps to more than 67% and operating margin expansion to a range of 13%-14% of revenues.Our Take on PENPenumbra exited the third quarter of 2025 on a solid note, with both earnings and revenues beating estimates. The Embolization and Access business exceeded expectations, reflecting the benefit of a dedicated peripheral embolization sales team alongside continued investment in innovation and new product introductions. Higher sales of global thrombectomy products were mainly due to increasing volume in the United States as a result of further market penetration of the existing products.The company also delivered the highest sequential quarterly increase in VTE case volume growth to date in 2025. The expansion of both margins in the quarter is highly impressive.PEN’s Zacks Rank and Key PicksCurrently, Penumbra carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, Intuitive Surgical ISRG and Boston Scientific BSX.Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks