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Insulet (PODD) Q2 Earnings Miss Estimates, '24 Sales View Raised
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Insulet Corporation (PODD - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 55 cents, up significantly 44.7% from the year-ago period’s figure. The bottom line missed the Zacks Consensus Estimate by 3.5%.
GAAP EPS was $2.59 compared with the year-ago figure of 39 cents.
Q2 Revenues
Revenues totaled $488.5 million, which beat the Zacks Consensus Estimate by 5.5%. The top line jumped 23.2% year over year (up 23.4% at the constant exchange rate or CER). CER growth exceeded the company’s guidance of 18%.
Segmental Revenues
Insulet’s Total Omnipod revenues of $480.4 million reflected an increase of 26.3% year over year (up 26.5% at CER). International Omnipod revenues of $128.1 million rose 23.5% (up 24.4% at CER). U.S. Omnipod revenues grew 27.3% year over year to $352.3 million.
The Drug Delivery business revenues totaled $8.1 million, down 49.4% from the year-ago period’s level.
Margins
Gross profit in the reported quarter was $330.9 million, up 24.9% from the prior-year quarter’s figure. Gross margin of 67.7% expanded 93 basis points year over year.
Selling, general & administrative expenses rose 24.4% to $222.4 million.
Research and development expenses declined 2.2% year over year to $53.9 million.
The operating profit in the quarter totaled $54.6 million, up 75.6% from the year-ago quarter’s reported actuals. Operating margin of 11.2% expanded 333 basis points year over year.
Cash Position
Insulet exited the second quarter of 2024 with cash and cash equivalents of $821 million compared with $751.2 million at the end of the first quarter of 2024.
2024 Revenue Guidance
Insulet updated its full-year 2024 projection for revenues. It also issued top-line guidance for third-quarter 2024.
For 2024, the company now expects revenue growth to be between 16% and 19% (up from the previously projected 14-18%). The Zacks Consensus Estimate for total revenues is pegged at $1.98 billion, suggesting 17.2% growth from the 2023 reported number.
Insulet’s total Omnipod revenue growth is expected to be in the range of 18-21% (previously 15-19%). The company expects Drug Delivery revenues to decline 40-50% (previously 50-60%).
Insulet Corporation Price, Consensus and EPS Surprise
For the third quarter of 2024, Insulet projects revenue growth of 18-21%. The Zacks Consensus Estimate for total revenues is pegged at $505.2 million, suggesting 16.7% growth from the third quarter of 2023.
Total Omnipod revenues are likely to grow 21-24%. Drug Delivery revenue decline is expected to be in the range of 60-75% (approximately $3-$4 million).
Our Take
Insulet exited the second quarter of 2024 on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The company benefited from continued high demand for Omnipod 5 — both in the United States and globally. However, the lowering of the Drug Delivery guidance is discouraging.
During the reported quarter, Insulet made Omnipod 5 fully available in the United Kingdom, Netherlands and France. The company also started the limited market release of the Omnipod 5 App for iPhone in the United States.
The expansion of both margins is encouraging. The raised 2024 revenue guidance instills optimism among investors.
Zacks Rank and Other Key Picks
Insulet currently carries a Zacks Rank #2 (Hold).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , National Vision (EYE - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% for 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
National Vision, carrying a Zacks Rank #1 at present, reported second-quarter 2024 earnings of 15 cents per share, which surpassed the Zacks Consensus Estimate by 75%. Revenues of $451.7 million missed the Zacks Consensus Estimate by 2.8%.
EYE has an earnings growth rate of 41.5% for 2025 compared with the S&P 500’s 11.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 96.23%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
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Insulet (PODD) Q2 Earnings Miss Estimates, '24 Sales View Raised
Insulet Corporation (PODD - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 55 cents, up significantly 44.7% from the year-ago period’s figure. The bottom line missed the Zacks Consensus Estimate by 3.5%.
GAAP EPS was $2.59 compared with the year-ago figure of 39 cents.
Q2 Revenues
Revenues totaled $488.5 million, which beat the Zacks Consensus Estimate by 5.5%. The top line jumped 23.2% year over year (up 23.4% at the constant exchange rate or CER). CER growth exceeded the company’s guidance of 18%.
Segmental Revenues
Insulet’s Total Omnipod revenues of $480.4 million reflected an increase of 26.3% year over year (up 26.5% at CER). International Omnipod revenues of $128.1 million rose 23.5% (up 24.4% at CER). U.S. Omnipod revenues grew 27.3% year over year to $352.3 million.
The Drug Delivery business revenues totaled $8.1 million, down 49.4% from the year-ago period’s level.
Margins
Gross profit in the reported quarter was $330.9 million, up 24.9% from the prior-year quarter’s figure. Gross margin of 67.7% expanded 93 basis points year over year.
Selling, general & administrative expenses rose 24.4% to $222.4 million.
Research and development expenses declined 2.2% year over year to $53.9 million.
The operating profit in the quarter totaled $54.6 million, up 75.6% from the year-ago quarter’s reported actuals. Operating margin of 11.2% expanded 333 basis points year over year.
Cash Position
Insulet exited the second quarter of 2024 with cash and cash equivalents of $821 million compared with $751.2 million at the end of the first quarter of 2024.
2024 Revenue Guidance
Insulet updated its full-year 2024 projection for revenues. It also issued top-line guidance for third-quarter 2024.
For 2024, the company now expects revenue growth to be between 16% and 19% (up from the previously projected 14-18%). The Zacks Consensus Estimate for total revenues is pegged at $1.98 billion, suggesting 17.2% growth from the 2023 reported number.
Insulet’s total Omnipod revenue growth is expected to be in the range of 18-21% (previously 15-19%). The company expects Drug Delivery revenues to decline 40-50% (previously 50-60%).
Insulet Corporation Price, Consensus and EPS Surprise
Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote
For the third quarter of 2024, Insulet projects revenue growth of 18-21%. The Zacks Consensus Estimate for total revenues is pegged at $505.2 million, suggesting 16.7% growth from the third quarter of 2023.
Total Omnipod revenues are likely to grow 21-24%. Drug Delivery revenue decline is expected to be in the range of 60-75% (approximately $3-$4 million).
Our Take
Insulet exited the second quarter of 2024 on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The company benefited from continued high demand for Omnipod 5 — both in the United States and globally. However, the lowering of the Drug Delivery guidance is discouraging.
During the reported quarter, Insulet made Omnipod 5 fully available in the United Kingdom, Netherlands and France. The company also started the limited market release of the Omnipod 5 App for iPhone in the United States.
The expansion of both margins is encouraging. The raised 2024 revenue guidance instills optimism among investors.
Zacks Rank and Other Key Picks
Insulet currently carries a Zacks Rank #2 (Hold).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , National Vision (EYE - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% for 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
National Vision, carrying a Zacks Rank #1 at present, reported second-quarter 2024 earnings of 15 cents per share, which surpassed the Zacks Consensus Estimate by 75%. Revenues of $451.7 million missed the Zacks Consensus Estimate by 2.8%.
EYE has an earnings growth rate of 41.5% for 2025 compared with the S&P 500’s 11.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 96.23%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.