Insulet [WtwhTicker symbol=”PODD”](Nasdaq:PODD)[/WtwhTicker] shares are up on first-quarter results that topped the consensus forecast.
Shares of PODD rose more than 3% to 331.60 apiece by midday trading today. 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 developer posted profits of $23.8 million, according to the company’s earnings report yesterday evening. That amounts to 34¢ per share on sales of $358.1 million for the three months ended March 31, 2023.
Insulet recorded a 14.4% bottom-line slide on sales growth of 21.2%. Total Omnipod revenue came in at $357.6 million for an increase of 32.7% year over year. Insulet rolled out its next-generation Omnipod 5 in August 2022, following the system’s FDA clearance in February 2022. The company also earned FDA clearance for the Omnipod GO, a basal-only insulin delivery device, last month.
Adjusted to exclude one-time items, earnings per share totaled 23¢. That landed 12¢ ahead of Wall Street projections. Sales also topped expectations as analysts looked for sales of $330.8 million.
“Our first quarter results demonstrate strong financial performance, including unprecedented results for U.S. Omnipod, and ongoing strategic progress,” said Jim Hollingshead, Insulet president and CEO. “Omnipod 5 is quickly transforming diabetes management in the U.S. by offering improved outcomes and quality of life and we remain on track to begin our staged international roll-out in a matter of months. We expect 2023 to be another successful year as we build on our momentum and further execute our mission to improve the lives of people with diabetes.”
Insulet increased its revenue guidance for the full 2023 fiscal year. After previously projecting growth between 14% and 19%, the company now expects a revenue increase of 18% to 22%. Insulet expects Omnipod growth to come in at 21% to 25%, previously suggesting 17% to 22%.
The analysts’ view
BTIG analysts Marie Thibault and Sam Eiber wrote that they expect demand for Omnipod 5 to “continue in the near-to-medium term.” They cited catalysts like iOS integration, expansion to type 2 diabetes, integration with next-gen CGMs and international launches.
“We anticipated a strong Q1 result but note expectations were lofty into the print given PODD’s premium multiple,” they wrote. “PODD remains one of the highest-quality names in our universe.”
The analysts reiterated their “Buy” rating for Insulet.
This story originally ran on May 4, 2023. Updated May 5 with the next-day stock price.
