Q1 2024 Earnings Summary
Reported on Feb 19, 2025 (After Market Close)
Pre-Earnings Price$210.00Last close (May 7, 2024)
Post-Earnings Price$205.91Open (May 8, 2024)
Price Change
$-4.09(-1.95%)
- Strong growth in U.S. thrombectomy business expected to continue driving revenue over many years. Penumbra's U.S. thrombectomy business grew by 35.2% in Q1 2024, and the company believes this segment will drive growth "not just this year, but for many, many years, as we continue to catalyze the adoption of that."
- Margin expansion and increasing profitability. The company is ahead of schedule to deliver 100 to 150 basis points of gross margin expansion in 2024 and expects operating margin to expand by 100 to 200 basis points each quarter year-over-year. This focus on margins is expected to improve profitability.
- Upcoming product launches to fuel future growth. Penumbra plans to launch three additional CVT products within the next 12 months, at least one of which is expected before the end of 2024. These new products are anticipated to drive growth and expand the company's market presence.
- Penumbra lowered its growth guidance for 2024 to 16% to 20%, which is below the initial outlook of over 20%, and management is hesitant to commit to returning to higher growth rates, indicating potential challenges in achieving previous growth levels.
- The company incurred a $4.8 million one-time litigation expense related to wage and hour complaints in California, revealing technical violations that could raise concerns about operational compliance and potential future liabilities.
- There is uncertainty regarding the completion timeline of the THUNDER trial for the Thunderbolt product, as management refrained from providing updated guidance on enrollment or completion dates, which could delay product launch and impact future growth in the stroke market.