Insulet (Nasdaq: PODD) reported first-quarter results that topped the consensus forecast, at the same time that it announced its CEO Shacey Petrovic plans to step down for personal family reasons.
The Acton, Massachusetts-based automated insulin technology developer posted profits of $27.8 million, or 40¢ per share, on sales of $295.4 million for the three months ended March 31, 2022. The results, out this evening, represented a big bottom-line gain from breakeven this time a year ago — and sales growth of 17.1%.
Insulet, the maker of the Omnipod 5 automated insulin delivery system, which garnered FDA clearance during the quarter, saw its EPS come in 17¢ ahead of projections on Wall Street, where analysts were looking for sales of $288.2 million.
“We are off to a great start in 2022 with first-quarter financial results that reflect strong global Omnipod adoption, consumer satisfaction and operational excellence, positioning the Company for another successful year,” Petrovic said in a news release. “The commercial launch of Omnipod 5 is progressing very well, and we are receiving excellent customer feedback. We also recently shared compelling type 2 feasibility data that demonstrates how powerful Omnipod 5 can be for this dramatically underserved population.
“Momentum across our business continues to grow, and our mission to simplify and improve the lives of people with diabetes remains at the center of everything we do.”
Insulet reaffirmed its 2022 revenue guidance for growth between 12% and 16%. The company expects Omnipod sales growth to range between 16% and 20%, raising the bottom end from a previously projected 15% increase.
PODD shares were down 3% at $220.10 per share after-hours today.
Stocks today have been hit today, as reflected by the Dow Jones Industrial Average, which was down more than 3%, more than 1,100 points, as investors reevaluated the economic effects of the Federal Reserve’s plans to combat inflation.
Despite the announcement of Petrovic’s departure as Insulet’s president and CEO, Wall Street’s outlook for the company remains positive, according to BTIG analyst Marie Thibault.
“Beyond Q1 results, we were surprised and sorry to hear that CEO Shacey Petrovic is stepping down due to medical and family reasons,” Thibault wrote in a report. “We believe Petrovic was well-respected, having led a period of strong growth and business transformation at PODD. Overall, we believe this was a robust Q1 report against a tough macroeconomic backdrop. While some may nitpick at operating margin or the measured pace of the U.S. Omnipod 5 introduction, our bullish long-term outlook remains intact.”