(Reuters) -Medical device maker Insulet (NASDAQ:PODD) Corp posted better-than-expected quarterly profit and sales on strong demand for its wearable, tubeless insulin pumps.
However, its shares fell 5% on Friday, as it forecast 2024 revenue that Wall Street analysts called "optically conservative".
The company said that its largest U.S. pharmacy wholesalers collectively placed orders for an estimated $20 million to $25 million in the fourth quarter, which were previously expected in the first quarter.
Insulet also benefited from an increase in estimated channel inventory days on hand of about $10 million to $15 million as pharmacy distributors returned to their normal levels, the company said in a post-earnings call.
The stock sell-off was due to what seemed to be confusion surrounding "optically conservative" forecast at first glace, said Leerink Partners analyst Mike Kratky.
Kratky said that the company's revenue forecast range appears "almost entirely consistent with the company's preliminary commentary on 2024 revenue growth" last year.
The company sees 2024 total revenue growth between 12% and 17%, the mid-point of which is below analysts' estimates of 16.6%, according to LSEG data.
The Massachusetts-based company's revenue jumped 37.9% to $509.8 million for the quarter ended Dec. 31, compared with analysts' estimates of $461.1 million.
Insulet manufactures and sells insulin delivery devices under the brand 'Omnipod', which eliminate the need for multiple daily injections using syringes or insulin pens for people with insulin-dependent diabetes.
Excluding items, the company earned a profit of $1.40 per share compared with estimates of 66 cents per share.