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Insulet (PODD) to Report Q4 Earnings: What's in the Cards?
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Insulet Corporation (PODD - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 23, after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of 45 cents surpassed the Zacks Consensus Estimate by 164.71%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate thrice and missed once, the average beat being 37.51%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
In recent months, Insulet has been gaining in terms of new customers globally, largely banking on the U.S. full market release of the Omnipod 5 automated insulin delivery system. In the last reported third quarter of 2022, the company noted strong growth with Omnipod DASH, both in Insulet’s international markets and in the United States, especially in the type 2 diabetes market.In this regard, the company experienced greater-than-anticipated market enthusiasm for Omnipod 5. According to the company, demand is coming from all across the market, with the core target market of MDI users growing ahead of Insulet’s forecast. This trend is expected to have continued through the fourth quarter, leading to continued strong new customer adoption, thus driving the top line.
However, currently Omnipod users are converting to Omnipod 5 at a much higher rate than the company’s previous product launches. This is reducing the number of users in non- Omnipod 5 line. The net impact of this ongoing conversion might have remained neutral to Insulet’s Q4 revenues.
In Drug Delivery, Insulet is expected to have faced higher manufacturing costs in Q4. However, these costs are expected to have been partially offset by growing volume in the U.S. pharmacy channel, including associated premium. Currently, for 2022, the company expects to report a revenue decline of 35% from the 2021 level. This might get reflected in Q4 results as well.
The Estimate Picture
For fourth-quarter 2022, the Zacks Consensus Estimate for total revenues of $330.4 million implies a rise of 7.4% from the prior-year reported figure. Also, the consensus estimate for EPS is pegged at 24 cents, implying a decline of 42.9% from the prior-year reported figure.
What Our Model Suggests
Per our proven model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. However, this is not the case here, as you can see:
Earnings ESP: Insulet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +49.57% and a Zacks Rank of 2. ALKS has an estimated long-term growth rate of 23.1%.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +11.73% and is a Zacks #2 Rank stock. EXAS has an estimated growth rate of 29.4% for 2023.
Exact Sciences’ earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 0.6%.
Penumbra, Inc. (PEN - Free Report) has an Earnings ESP of +11.11% and sports a Zacks Rank of 1 at present. PEN’s earnings yield of 0.4% compares favorably with the industry’s negative yield.
Penumbra’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, with the average surprise being 37.6%.
Image: Bigstock
Insulet (PODD) to Report Q4 Earnings: What's in the Cards?
Insulet Corporation (PODD - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 23, after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of 45 cents surpassed the Zacks Consensus Estimate by 164.71%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate thrice and missed once, the average beat being 37.51%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
In recent months, Insulet has been gaining in terms of new customers globally, largely banking on the U.S. full market release of the Omnipod 5 automated insulin delivery system. In the last reported third quarter of 2022, the company noted strong growth with Omnipod DASH, both in Insulet’s international markets and in the United States, especially in the type 2 diabetes market.In this regard, the company experienced greater-than-anticipated market enthusiasm for Omnipod 5. According to the company, demand is coming from all across the market, with the core target market of MDI users growing ahead of Insulet’s forecast. This trend is expected to have continued through the fourth quarter, leading to continued strong new customer adoption, thus driving the top line.
Insulet Corporation Price and EPS Surprise
Insulet Corporation price-eps-surprise | Insulet Corporation Quote
However, currently Omnipod users are converting to Omnipod 5 at a much higher rate than the company’s previous product launches. This is reducing the number of users in non- Omnipod 5 line. The net impact of this ongoing conversion might have remained neutral to Insulet’s Q4 revenues.
In Drug Delivery, Insulet is expected to have faced higher manufacturing costs in Q4. However, these costs are expected to have been partially offset by growing volume in the U.S. pharmacy channel, including associated premium. Currently, for 2022, the company expects to report a revenue decline of 35% from the 2021 level. This might get reflected in Q4 results as well.
The Estimate Picture
For fourth-quarter 2022, the Zacks Consensus Estimate for total revenues of $330.4 million implies a rise of 7.4% from the prior-year reported figure. Also, the consensus estimate for EPS is pegged at 24 cents, implying a decline of 42.9% from the prior-year reported figure.
What Our Model Suggests
Per our proven model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. However, this is not the case here, as you can see:
Earnings ESP: Insulet has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +49.57% and a Zacks Rank of 2. ALKS has an estimated long-term growth rate of 23.1%.
Alkermes’ earnings surpassed estimates in three of the trailing four quarters and broke even in one, with the average surprise being 306.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +11.73% and is a Zacks #2 Rank stock. EXAS has an estimated growth rate of 29.4% for 2023.
Exact Sciences’ earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 0.6%.
Penumbra, Inc. (PEN - Free Report) has an Earnings ESP of +11.11% and sports a Zacks Rank of 1 at present. PEN’s earnings yield of 0.4% compares favorably with the industry’s negative yield.
Penumbra’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, with the average surprise being 37.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.