ALAMEDA, CA - Shares of Penumbra, Inc. (NYSE:PEN) plummeted by 16.5% as the company announced a cut in its full-year revenue guidance, overshadowing a second-quarter earnings beat.
The global healthcare company reported adjusted earnings per share (EPS) of $0.64, surpassing analysts' expectations of $0.56. However, the company's revenue for the quarter, at $299.4 million, was only marginally above the consensus estimate of $298.24 million.
Penumbra's revenue for the second quarter showed a robust increase of 14.5% compared to the same period last year, driven by a significant 24.9% rise in U.S. thrombectomy revenue.
Despite this growth, the company's updated full-year revenue outlook now stands at $1.18 billion to $1.2 billion, a decrease from the previously projected range of $1.23 billion to $1.27 billion, and below the analyst consensus of $1.24 billion.
The revised guidance reflects a $60 million reduction at the midpoint from the previous forecast. The company attributed this adjustment to a combination of factors, including a $20 million reduction in its China business due to economic challenges, a $15 million impact from delayed product launches in Europe, a $5 million decrease from its Immersive Healthcare business, and a $20 million adjustment in U.S. thrombectomy growth expectations.
Penumbra's second-quarter performance was also affected by one-time non-cash impairment and inventory write-down charges amounting to $110.3 million related to its Immersive Healthcare assets. Excluding these charges, non-GAAP income from operations was $31.7 million, an improvement from $20.3 million in the second quarter of the previous year.
Despite the reduced revenue outlook, Penumbra continues to anticipate non-GAAP gross margin expansion of 100 to 150 basis points and non-GAAP operating margin expansion of 100-200 basis points for the full year 2024. The company's CEO, Adam Elsesser, commented, "While we are adjusting our guidance to reflect the current challenges, we remain confident in our ability to drive long-term growth and continue to innovate in our core markets."
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