Medical device company Penumbra (NYSE:PEN) will be reporting earnings tomorrow afternoon. Here’s what you need to know.

Penumbra beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $301 million, up 11.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ constant currency revenue estimates.

Is Penumbra a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Penumbra’s revenue to grow 9.5% year on year to $311.7 million, slowing from the 28.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Penumbra has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Penumbra’s peers in the healthcare equipment and supplies segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Intuitive Surgical delivered year-on-year revenue growth of 25.2%, beating analysts’ expectations by 6.5%, and QuidelOrtho reported a revenue decline of 4.7%, topping estimates by 1.4%. Intuitive Surgical traded down 4% following the results, while QuidelOrtho was up 4.3%.

Read our full analysis of Intuitive Surgical’s results here and QuidelOrtho’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the healthcare equipment and supplies stocks have shown solid performance, the group has generally underperformed, with share prices down 2.3% on average over the last month. Penumbra’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $267.44 (compared to the current share price of $268.67).

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