Penumbra (PEN) to Report Q3 Earnings: What's in the Cards?
Penumbra PEN is scheduled to report third-quarter 2023 results on Nov 2, after market close.
In the last reported quarter, the company’s adjusted earnings per share of 43 cents surpassed the Zacks Consensus Estimate by 53.57%. Penumbra beat earnings estimates in each of the trailing four quarters, the average beat being 94.24%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Penumbra’s business is consistently gaining market share, driven by its vascular and neuro-line thrombectomy products.
Within Vascular, the momentum is particularly driven by strong market demand for the company’s Lightning Flash and Lightning Bolt 7. During the second-quarter earnings call, the company noted that it had doubled the number of venous thrombectomy cases employing Lightning Flash in the second quarter compared to the first quarter. Lightning Flash's transformative power, speed, safety, and efficacy profile, along with straightforward pricing, are the biggest drivers of the exceptional early adoption of the product. With many more new customers just learning about and starting to try Flash in the next several quarters, the company also expected this momentum to continue in the third quarter.
In Lightning Bolt 7, the company has experienced the fastest growth in this franchise since its launch in early 2021. Penumbra noted that adopting Lightning Bolt 7 will build momentum as the company moves through the third quarter into the fourth quarter of 2023 and the first quarter of 2024. This will likely be reflected in the third-quarter performance.
Penumbra, Inc. Price and EPS Surprise
Penumbra, Inc. price-eps-surprise | Penumbra, Inc. Quote
With Penumbra’s consistent efforts to reach the majority of the 800,000 annual venous and arterial patients in the United States over the next five-plus years, we expect the company to have experienced strong customer adoption through the months of the third quarter of 2023.
In terms of the company’s Neuro business, the company is consistently experiencing strong sales for its RED 72 (with the proprietary SENDit technology), RED 43 and BMX81. These products represent meaningful advances in the trackability of 0.072-sized aspiration catheters and distal clot removal. Coupled with the recently launched BMX81, these products consistently boost the company’s growth and market share in Neuro, particularly as physicians continue to realize the trade-off with oversized aspiration catheters traditionally available in the market. With the consumer trend remaining consistent, we expect this momentum to have also continued in the third quarter.
Q3 Estimates
The Zacks Consensus Estimate for Penumbra’s third-quarter 2023 revenues is pegged at $266 million, suggesting a rise of 24.5% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS is 46 cents, a significant increase from the year-ago earnings of 1 cents per share.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chance of beating estimates. This is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter, per our model.
Ligand Pharmaceuticals LGND has an Earnings ESP of +2.94% and a Zacks Rank #1. The company is expected to release third-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS indicates an increase of 65.9% from the year-ago reported figure.
Spero Therapeutics SPRO has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates an improvement of 54.6% from the year-ago reported figure.
Inspire Medical Systems INSP has an Earnings ESP of +29.81% and a Zacks Rank #3. The company is expected to release third-quarter 2023 results on Nov 7, 2023.
INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.61%. The Zacks Consensus Estimate for Inspire Medical’s third-quarter 2023 EPS implies an increase of 11.7% from the year-ago reported figure.
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Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
Spero Therapeutics, Inc. (SPRO) : Free Stock Analysis Report
Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report
