What Happened?
Shares of medical device company Penumbra (NYSE:PEN) jumped 13.6% in the afternoon session after the company reported impressive fourth-quarter 2024 results, which blew past analysts' constant currency revenue, EBITDA, and earnings expectations. Sales grew by 10.8% compared to the previous year due to strong performance in its U.S. thrombectomy business, which surged 27.3%. This strength helped offset a 16.5% decline in international sales, largely due to weaker performance in China. However, despite the strong quarter, full-year revenue guidance for 2025 fell slightly short of expectations. Looking ahead, the company expects continued growth in its U.S. thrombectomy business, particularly from its computer-assisted vacuum thrombectomy (CAVT) products. That said, international market softness remains a concern.
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What The Market Is Telling Us
Penumbra’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Penumbra and indicate this news significantly impacted the market’s perception of the business.
Penumbra is up 26.6% since the beginning of the year, and at $304.11 per share, has set a new 52-week high. Investors who bought $1,000 worth of Penumbra’s shares 5 years ago would now be looking at an investment worth $1,568.
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