Penumbra Q2 Revenue Edges Past Estimates, Net Income Drops on Deal Costs
PEN sits 45% above its 52-week low of $221.26.
Summary
Penumbra's Q2 revenue rose 14.9% to $390.05M, just above the $389M consensus, driven by 20% growth in embolization and access products. Net income fell to $34.8M from $45.3M a year ago, weighed down by $6.9M in acquisition-related expenses tied to the pending Boston Scientific deal. The company is not providing full-year guidance, citing the acquisition. This follows the May 7 stockholder approval of the merger, keeping the $14.5B deal on track. With the stock trading at 56x forward earnings and a hold-heavy analyst consensus, the slight revenue beat is unlikely to shift sentiment dramatically, but the deal costs and lack of guidance reinforce a wait-and-see stance.
At the time of this announcement, PEN was trading at $319.83 on NYSE in the Life Sciences sector, with a market capitalization of approximately $12.6B. The 52-week trading range was $221.26 to $362.41. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.