Insulet (Nasdaq:PODD) shares fell after hours today on first-quarter results that came in mixed compared to the consensus forecast.
Shares of PODD dipped 3% to $172 apiece in after the market closed today.
The Acton, Massachusetts-based automated insulin delivery technology developer reported profits of $51.5 million. That equals 73¢ per share on sales of $441.7 million for the quarter that ended March 31, 2024.
Insulet more than doubled its profits from the same period a year ago on a sales uptick of 23.3%.
Adjusted to exclude one-time items, earnings per share came in at 23¢. That fell 16¢ shy of expectations on Wall Street. Sales came in ahead of the forecast as experts estimated $424.1 million in revenue.
Omnipod revenue of $433 million, marking an increase of 21.1% year-over-year, provided a boost as well.
“We are pleased with our strong first quarter results, which underscore the strength of our advanced technology platform and deep competitive advantages,” said Jim Hollingshead, Insulet president and CEO. “During the quarter, we achieved strong new customer starts and gained market share globally, and expanded access to Omnipod 5 through our commercial launches with Dexcom’s G7 in the U.S. and with sensor of choice – Abbott’s Freestyle Libre 2 Plus and G6 – in two European countries.
“As a result of our momentum, upcoming catalysts and operational execution, we have increased both our revenue and operating margin outlook for the year. Insulet is well positioned to drive continued profitable growth while delivering on our mission to improve the lives of people with diabetes.”
Insulet previously projected 12% to 17% revenue growth in 2024, but now anticipates between 14% to 18% growth. That includes a rise in Omnipod sales expectations from 13%-18% to 15%- 19%.
The analysts’ view on Insulet’s first quarter
According to BTIG’s Marie Thibault and Sam Eiber, Insulet expects U.S. Omnipod starts to accelerate in the second half of the year. That would follow a full market release of Omnipod 5 with the Dexcom G7. Management projects 2024 starts to come in ahead of 2023.
They also note that type 2 patients constituted a quarter of first-quarter new starts, highlighting interest in that population, despite low pump penetration.
“We see plenty of near- and long-term catalysts ahead, including integration with new CGMs (G7 and Libre 2 Plus), OUS launches (France this summer), phone control (U.S. iOS LMR this summer) and expansion into a Type 2 indication (on track to file by year-end), all of which we think can help accelerate new customer starts in the back half of the year and into 2025,” the analysts said.
Thibault and Eiber say Insulet “remains a top-quality medtech name.” They reiterated their “Buy” rating.
