How did PEN's Q4 earnings surprise investors?

Penumbra's Q4 earnings exceeded investor expectations in several key metrics, leading to a positive market reaction and surge in stock price.

1. **Earnings Per Share (EPS)**:
- Penumbra reported an EPS of $0.97 for Q4 2024, which surpassed the consensus estimate of $0.90. This indicates that the company performed better than anticipated on the earnings front.
2. **Revenue**: The company's revenue for the quarter was $321.3 million, surpassing the estimated $311.32 million. This 10.8% year-over-year increase in revenue reflects strong sales performance, particularly in the thrombectomy products.
3. **Thrombectomy Product Sales**: The sales of Penumbra's thrombectomy products increased by 16.8% to $222.7 million. This significant growth is a key driver behind the overall revenue outperformance, highlighting the strong market demand for its core products.
4. **Stock Reaction**: Following the earnings release, Penumbra's stock surged by 3.2% or 7.32% in aftermarket trading, closing at $291, reflecting investor confidence and positive sentiment about the company's performance and future prospects.
5. **Analyst Expectations**: Prior to the earnings release, analysts had lowered their EPS estimates to $0.74, which Penumbra easily surpassed. This discrepancy between expectations and actual performance contributed to the positive surprise.
6. **Full-Year Outlook**: Penumbra projected full-year revenue between $1.34 billion and $1.36 billion for 2025, representing 12-14% growth over 2024. This outlook, while slightly below the consensus estimate, reflects the company's confidence in continued growth and market expansion.

In conclusion, Penumbra's Q4 earnings exceeded investor expectations in both EPS and revenue, driven by strong sales of its thrombectomy products. The company's stock reacted positively, and analysts have boosted price forecasts following the upbeat earnings report and optimistic outlook for 2025.