Penumbra, Inc. PEN that released its IPO in Sep 2015 has reported first-quarter 2016 earnings per share of 2 cents, comprehensively beating the Zacks Consensus Estimate of a loss of 7 cents.Revenues in DetailRevenues in the reported quarter surged 48.7% year over year (up 51% at constant exchange rate or CER) to $57.9 million, cruising past the Zacks Consensus Estimate of $54 million.On a geographic basis, revenues in the U.S. (representing 68% of total revenue) grossed $39.4 million, up 49.2% from the year-ago quarter figure, while International sales (32% of total sales) jumped 46.8% year over year (up 54% at CER) to $18.5 million.By product category, revenues from sales of neuro products grew to $41.3 million for the first quarter of 2016, an increase of 30.4%, or 32.8% on a constant currency basis. Revenues from sales of peripheral vascular products rose to $16.6 million for the first quarter, an increase of 127.9%, or 130% on a constant currency basis.While neuro growth was driven by sales of Penumbra system, which include ACE and ACE64, the company witnessed a strong pull-through from its peripheral embolization products as well.Operational UpdatePenumbra’s gross margin was 68.9% in the reported quarter, reflecting an expansion of 28 basis points (bps) year over year, on account of a 49.3% rise in gross profit. Research and development expenses totaled $5 million, up 56.7%, while sales, general and administrative expenses amounted to $33.1 million, up 69.2% year over year. Both the increases were driven by a rise in headcount and related compensation expense.Income from operations came in at $1.8 million, reflecting a massive 54% decline from the prior-year quarter. Thus, the company recorded operating margin of 3.2%, an expansion of 708 bps from first-quarter 2015.Financial UpdatePenumbra exited first-quarter 2016 with cash and cash equivalents of $17.6 million compared with $19.5 million at the end of 2015.OutlookPenumbra still expects total revenue for 2016 to remain in the range of $230–$235 million. The current Zacks Consensus Estimate stands at $232 million, falling within but close to the expected range.Our TakePenumbra’s first-quarter 2016 performance was strong, with the company reporting impressive bottom-line results. Revenues also improved, beating expectations. In the quarter under review, the company witnessed strong growth across all its geographies and product line.Penumbra is an active player in the fast-growing interventional therapies space. In fact, the company’s products primarily cater to the unmet clinical needs across two major markets, viz. neuro and peripheral vascular.The gradually increasing demand for treatment options in the heart diseases market reflects the high-growth potential in this niche. Attractive growth opportunities exist for Penumbra in the ischemic stroke market as well as in the more established markets like hemorrhagic stroke and peripheral vascular. Accordingly, Penumbra’s strategy to focus on impactful product development across a varied portfolio earns investor confidence in the stock.Zacks Rank & Other Stocks to ConsiderPenumbra currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical instrument sector are Edwards Lifesciences Corp. EW, Masimo Corporation MASI and IRadimed Corporation IRMD. All the three stocks sport a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MASIMO CORP (MASI): Free Stock Analysis Report IRADIMED CORP (IRMD): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report PENUMBRA INC (PEN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research