Insulet (Nasdaq:PODD) stock is down today, even with Street-beating Q2 results and raised guidance.
Shares of PODD were down more than 3% at $229.85 apiece by midday trading today. (Insulet announced its earnings yesterday evening.) MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down slightly.
The Acton, Massachusetts-based automated insulin delivery technology maker posted profits of $27.3 million. That amounts to 39¢ per share on sales of $396.5 million for the three months ended June 30, 2023
Insulet recorded a massive bottom-line gain out of the red on sales growth of 32.4%.
Adjusted to exclude one-time items, earnings per share came in at 38¢. That landed 12¢ ahead of expectations on Wall Street, where analysts forecast $384.95 million in revenue.
Total Omnipod sales made up the majority of Insulet’s revenues, rising 33.2% year-over-year to $380.5 million for that product family.
During the quarter, Insulet notched a handful of positive steps forward. That included FDA clearance for its basal-only Omnipod GO long-acting insulin delivery device. The company also launched its latest-generation Omnipod 5 in the UK, marking its first international commercial rollout.
Insulet also reported progress integrating Omnipod 5 with the Abbott FreeStyle Libre 2 continuous glucose monitor during the quarter.
“Our second quarter achievements demonstrate the strength and value of our pioneering offerings and dedicated team,” said Jim Hollingshead, Insulet president and CEO. “Omnipod 5 continues to disrupt the diabetes market in the U.S. and has received a fantastic market response internationally with its commercial launch in the UK. We are also very well-positioned in the type 2 market, which is currently driven by Omnipod DASH and soon to be joined by Omnipod GO and ultimately Omnipod 5.
“We continue to deliver on our mission to improve the lives of people with diabetes, and we are just getting started.”
For the full year, Insulet now expects 22% to 25% sales growth, increasing its guidance from 18% to 22% previously. It expects Omnipod sales to rise by 25% to 28%, having previously projected 21% to 25%.
The analyst’s view on Insulet
BTIG analysts Marie Thibault and Sam Eiber say they don’t view the rise of diabetes drugs as a threat to Insulet’s growth. However, they trimmed some forecasts on sales to reflect increased pressure on diabetes technology as a whole with GLP-1 updates.
The analysts reiterated their “Buy” rating for Insulet, citing the differentiated Omnipod offerings and lower upfront costs. They also see reduced barriers to access, a type 2 diabetes opportunity and the potential for drug delivery upside.
“We expect the launch of the Omnipod 5 automated insulin delivery (AID) system to extend volume and sales growth,” they wrote. “Other growth drivers include continued penetration of the T2D population and international expansion.”
This story originally ran on Aug. 8, 2023. Updated Aug. 9 with the next-day stock price.
