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Why Is Insulet (PODD) Up 17.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Insulet (PODD - Free Report) . Shares have added about 17.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Insulet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Insulet Misses on Q2 Earnings
Insulet Corporation reported earnings per share (EPS) of 2 cents in second-quarter 2019 against a net loss of 3 cents in the prior-year quarter. The figure, however, missed the Zacks Consensus Estimate for earnings of 3 cents by 33.3%.
Revenues in Detail
Revenues in the second quarter totaled $177.1 million, beating the Zacks Consensus Estimate by 8.6%. Moreover, the top line surged 42.5% from the year-ago number and also exceeded the company’s projected band of $160-165 million for second-quarter revenues.
Insulet delivered second-quarter U.S. Omnipod revenues of $98.1 million, reflecting an increase of 26% year over year.
International Omnipod revenues of $56.9 million were up 48%.
The Drug Delivery business’ revenues totaled $62.7 million, up 120% year over year.
Margins
Gross profit in the reported quarter was $116.4 million, up 41.8% from the prior-year quarter. However, gross margin of 65.7% contracted 33 basis points (bps) due to the impact of the highly automated US manufacturing line in Massachusetts that has just begun operations.
Although total operating expenses of $108.8 million escalated 39.9% from the year-ago figure, the operating margin expanded 81 bps to 4.3% in the second quarter.
2019 Guidance
For 2019, the company has raised its revenue expectation to the range of $700-$715 million from the prior estimate of $667-$690 million. This, in turn, suggests growth of roughly 24-27% from the level achieved in 2018 (earlier-expected growth rate was 18-22%). The Zacks Consensus Estimate for revenues is pegged at $683.3 million, near the upper end of the guided range.
For the third quarter of 2019, Insulet expects revenues in the band of $174-181 million, indicating an approximate increase of 15-20% from the year-ago reported number. The Zacks Consensus Estimate for the metric is pegged at $172.3 million, lower than the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -34.27% due to these changes.
VGM Scores
At this time, Insulet has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Insulet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Insulet (PODD) Up 17.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Insulet (PODD - Free Report) . Shares have added about 17.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Insulet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Insulet Misses on Q2 Earnings
Insulet Corporation reported earnings per share (EPS) of 2 cents in second-quarter 2019 against a net loss of 3 cents in the prior-year quarter. The figure, however, missed the Zacks Consensus Estimate for earnings of 3 cents by 33.3%.
Revenues in Detail
Revenues in the second quarter totaled $177.1 million, beating the Zacks Consensus Estimate by 8.6%. Moreover, the top line surged 42.5% from the year-ago number and also exceeded the company’s projected band of $160-165 million for second-quarter revenues.
Insulet delivered second-quarter U.S. Omnipod revenues of $98.1 million, reflecting an increase of 26% year over year.
International Omnipod revenues of $56.9 million were up 48%.
The Drug Delivery business’ revenues totaled $62.7 million, up 120% year over year.
Margins
Gross profit in the reported quarter was $116.4 million, up 41.8% from the prior-year quarter. However, gross margin of 65.7% contracted 33 basis points (bps) due to the impact of the highly automated US manufacturing line in Massachusetts that has just begun operations.
Although total operating expenses of $108.8 million escalated 39.9% from the year-ago figure, the operating margin expanded 81 bps to 4.3% in the second quarter.
2019 Guidance
For 2019, the company has raised its revenue expectation to the range of $700-$715 million from the prior estimate of $667-$690 million. This, in turn, suggests growth of roughly 24-27% from the level achieved in 2018 (earlier-expected growth rate was 18-22%). The Zacks Consensus Estimate for revenues is pegged at $683.3 million, near the upper end of the guided range.
For the third quarter of 2019, Insulet expects revenues in the band of $174-181 million, indicating an approximate increase of 15-20% from the year-ago reported number. The Zacks Consensus Estimate for the metric is pegged at $172.3 million, lower than the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -34.27% due to these changes.
VGM Scores
At this time, Insulet has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Insulet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.