Insulet (PODD) stock up 14% on positive earnings and growth forecast

Shares of medical device company Insulet Corporation (NASDAQ: PODD) witnessed a remarkable surge, jumping by 14% on Friday in response to the company’s recent earnings report.

The substantial increase in stock price follows strong financial results and positive guidance for the future.

Insulet’s Q3 earnings beat expectations

In the latest earnings report, Insulet reported revenue of $432.7 million for the third quarter of 2023, marking a notable 27% year-over-year increase.

The company’s performance exceeded the Zacks Consensus Estimate of $413.82 million, showcasing a surprise of +4.56%. This significant revenue growth demonstrates the company’s solid financial performance.

Earnings per share (EPS) also displayed impressive growth, with Q3 EPS reported at $0.71, compared to $0.45 in the same quarter the previous year. This exceeded the consensus EPS estimate of $0.40 by a substantial +77.50%. The increase in profitability is a positive indicator for investors.

Key metrics of the recent Insulet report

Insulet outperformed in key metrics that are closely monitored by Wall Street analysts, providing insight into the company’s underlying performance:

The company reported $320.60 million in revenue from its US Omnipod segment, surpassing the estimated figure of $306.52 million. This represents a remarkable +34.7% change compared to the year-ago quarter, indicating robust growth in this segment.

Insulet generated $101.40 million in revenue from its International Omnipod segment, exceeding the estimated figure of $97.02 million. This segment also demonstrated growth, with a +15.2% change compared to the previous year.

While most segments showed growth, the Drug Delivery segment reported revenue of $10.70 million, in line with the 10-analyst average estimate of $10.62 million. However, this segment experienced a year-over-year decline of -27.2%.

Market response and outlook

The market responded positively to Insulet’s strong performance, driving the stock’s price up by 14%.

Despite recent stock volatility, the company’s positive outlook and promising growth in the diabetes-related Omnipod segments have generated confidence among investors and analysts. Insulet (PODD) currently holds a Zacks Rank #2 (Buy), suggesting potential outperformance in the near term.

Jim Hollingshead, President and CEO of Insulet, expressed optimism about the company’s future, attributing the strong results to the continued high demand for their Omnipod 5 product both in the US and globally.

As a result, the company has raised its full-year revenue growth guidance for 2023, projecting a range of 26% to 27%, up from the previous range of 22% to 25%.