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Insulet Shares Tumble on Earnings Miss Despite Revenue Beat

Published 05/09/2024, 04:09 PM
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ACTON, Mass. - Insulet (NASDAQ:PODD) Corporation (NASDAQ: PODD), a leader in tubeless insulin pump technology, reported a significant earnings miss in the first quarter of 2024, sending shares down 9%.

The company posted adjusted earnings per share (EPS) of $0.23, falling short of the analyst consensus of $0.40. Despite the earnings shortfall, the company's revenue outperformed expectations, coming in at $441.7 million against a consensus estimate of $424.04 million, marking a 23.3% increase from the same quarter last year.

The robust revenue growth was attributed to strong performance across all product lines, with total Omnipod revenue rising by 21.1% to $433.0 million. U.S. Omnipod revenue grew by 22.7%, while international revenue increased by 16.9%.

The company's gross margin also improved to 69.5%, a significant rise from the previous year's 67.2%.

Despite the revenue outperformance, the market responded negatively to the earnings miss, reflecting investor concerns over profitability.

Insulet's President and CEO, Jim Hollingshead, commented on the quarter's results, emphasizing the company's strong market position and the successful launch of Omnipod 5 integrated with Dexcom (NASDAQ:DXCM)'s G7 sensor in the U.S. and other sensors in Europe.

Looking ahead, Insulet has raised its full-year 2024 revenue growth guidance to a range of 14% to 18%, up from the previous forecast of 12% to 17%.

For the second quarter ending June 30, 2024, the company anticipates revenue growth of 15% to 18%. The expected gross margin remains reaffirmed at 68% to 69%, with operating margin projections increased to approximately 13.5%.

The company's forward-looking statements indicate confidence in continued growth and market share gains, supported by its innovative product offerings and strategic initiatives. However, the immediate market reaction to the earnings miss suggests that investors are seeking stronger evidence of profitability in the face of robust sales growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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