Will Penumbra Inc’s (PEN) Earnings Grow Over The Next Year?
Penumbra Inc (NYSE:PEN) is predicted to colossally grow its earnings per share by over 300% in the next three years. At a current EPS of $0.153, this growth rate means shareholders can expect an impending EPS of $0.769. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for PEN
Exciting times ahead for PEN
In the same period we should see the revenue jump from $294M to $479M and profits (net income) are predicted to shoot up from $5M to $24M in the next couple of years, more than doubling from the most recent level. Margins are expected to be muted at a single digit rate of 5.61%.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. PEN’s earnings growth the past couple of years was 55.28% which indicates that the company’s past performance is quite revealing of future outcome. This means PEN has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For PEN, there are three pertinent factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Future Earnings: How does PEN’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PEN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
