Shares in Insulet (NSDQ:PODD) soared today after the medical device maker topped sales expectations on Wall Street with its third quarter results.
The Billerica, Mass-based company posted a net loss of -$2.2 million on sales of $121.8 million for the 3 months ended Sept. 30, for bottom-line growth of 38% on sales growth of 28% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were -4¢, three cents behind consensus on The Street, where analysts were looking for sales of $114 million.
“We achieved strong third quarter results across all of our businesses, particularly in our international business. In addition to our 28% revenue growth, we achieved a 180-basis point improvement in gross margin. We are well on our way to our fiscal 2021 targets of $1 billion in revenue and approaching 70% gross margin,” chairman & CEO Patrick Sullivan said in prepared remarks.
“We are pleased with our progress in product innovation and the growing body of clinical data supporting the many benefits of our Omnipod system, as highlighted at the European Association for the Study of Diabetes conference in September. In the third quarter, we broke ground at our new, state-of-the-art manufacturing facility in Massachusetts, which will create manufacturing redundancy and improve operating efficiencies and product quality.”
Insulet raised its full-year revenue guidance to a range of $456 to $459 million, up from $440 to $450 million.
Leerink analysts Danielle Antalffy and Rebecca Wang wrote in a note to investors that Insulet delivered a strong quarter, highlighted by strong adoption in its Omnipod business.
“PODD in our view is well positioned to achieve its $1B sales target by 2021, driven by: (1) Potential coverage expansion into the 40% of patients who fall under Medicare, Medicaid, and local payers; (2) Continued pipeline progress, with Dash showcased at ADA in June and set to launch by mid-2018; (3) Share gain in the U.S. with Animas exiting the pump market; and (4) Ongoing international momentum, with PODD transitioning to direct distribution in Europe in mid-2018,” the analysts wrote.
PODD shares were trading at $67.11 apiece today in early morning activity, up 15.4%.
