Insulet (Nasdaq:PODD) shares dipped after hours today on fourth-quarter results that came in ahead of the consensus forecast.
Shares of PODD fell 2.7% to $280.66 apiece in post-market trading on Thursday, Feb. 21. By midday trading on Friday, Feb. 22, shares were down 2.4%, at 281.36.
The Acton, Massachusetts–based automated insulin delivery technology maker reported profits of $100.7 million. That equals $1.39 per share on sales of $597.5 million for the three months ended Dec. 31, 2024.
Insulet recorded a 2.5% bottom-line slide on a sales increase of 17.2%.
Adjusted to exclude one-time items, earnings per share came in at $1.15. That landed 13¢ ahead of expectations on Wall Street. Sales also topped estimates as experts forecast $582 million in revenue.
For the full year, Insulet’s $2.1 billion in revenue marks a 22.1% year-over-year improvement. It also exceeds the company’s guidance for between 20% and 21%. Total Omnipod revenue of $2 billion represented a 22.4% year-over-year increase for 2024.
“We concluded an incredible year with a very strong fourth quarter, achieving significant milestones across the business, and exceeding our growth and margin objectives,” said Jim Hollingshead, Insulet president and CEO. “We continue to see robust demand and momentum for Omnipod 5, now available to both type 1 and type 2 patients in the U.S., and we continue to expand in international markets. We generated more than $2 billion in full-year revenue for the first time in Insulet’s history, reached more customers, and continued to expand margins.
“I am proud of what our team accomplishes every day to create better health outcomes for our customers, set new standards in the management of diabetes, and drive success across our organization.”
For 2025, Insulet expects revenue growth between 16% and 20%. It projects Omnipod sales to increase by 17%-21%.
The analysts’ take on Insulet
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang reiterated their “Buy” rating for Insulet after the fourth quarter. However, they note that, given significant Omnipod sales growth in the U.S. and a 60% rise in stock price for the company since its August label expansion to type 2 diabetes, they see the 2025 guidance as “somewhat underwhelming.”
Insulet pointed to rebate-related issues in the pharma channel, setting up a first-quarter headwind that should reverse through the remainder of the year. Additionally, the analysts say that company officials are aiming for the high end of the guidance range. The analysts say international Omnipod outlooks impressed them as well.
They said Insulet plans to invest in R&D and add to its sales team. However, it may face headwinds from geographic mix. Still, the analysts labeled the company’s growth drivers like U.S. pharmacy channel volume increases and manufacturing efficiencies as sustainable.
“While shares may take a breather as investors digest 2025 guidance, we continue to like PODD’s growth drivers, recurring revenue model, competitive moat with T2D and pharmacy, and profit margin,” the analysts wrote.
