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Insulet (PODD) Beats Earnings and Revenue Estimates in Q1

Zacks Equity Research

Insulet Corporation PODD reported earnings per share (EPS) of 7 cents in first-quarter 2019 against a net loss of 11 cents posted in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of earnings of 2 cents by a massive 250%.

Revenues in Detail

Revenues in the first quarter totaled $159.6 million, beating the Zacks Consensus Estimate by 3.4%. Moreover, the top line improved 29% from the year-ago quarter’s reported figure.

Insulet reported first-quarter 2019 U.S. Omnipod revenues of $86.1 million, reflecting an increase of 23% year over year.

 

Insulet Corporation Price, Consensus and EPS Surprise

Insulet Corporation Price, Consensus and EPS Surprise

Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote

 

International Omnipod revenues of $56.9 million surged 48%.

The Drug Delivery business’ revenues totaled $16.6 million, up 11% year over year.

Margins

Gross profit in the reported quarter was $10.6 million, up 40.7% from the prior-year quarter. Gross margin came in at 66.9%, expanding 552 basis points (bps) on continued improvement in manufacturing and supply-chain operations.

Total operating expenses came in at $99.4 million compared with $75.8 million witnessed in the prior-year quarter. Operating margin came in at 4.6% in the first quarter, indicating an expansion of 455 bps.

2019 Guidance

For 2019, the company has raised its revenue expectation to the range of $667-$690 million compared to prior estimate of $662-687 million. This suggests growth of roughly 18-22% from 2018. The Zacks Consensus Estimate for revenues is pegged at $677.4 million, within the guided range.

For the second quarter of 2019, Insulet expects revenues in the band of $160-165 million, reflecting growth of approximately 29-33% from the year-ago quarter. The Zacks Consensus Estimate for the metric is pegged at $162.6 million, within the guided range.

Our Take

Insulet exited the first quarter of 2019 on a solid note as both earnings and revenues beat the Zacks Consensus Estimates. We are encouraged by the year-over-year improvement in revenues on the solid uptake of Omnipod system both in the United States and international markets. We are upbeat about Insulet’s solid revenue growth within its Drug Delivery segment as well. Per management, Pod production at the U.S. manufacturing facility and the full U.S. commercial launch of the Omnipod DASH system drove revenues in the first quarter.

Nonetheless, Insulet is exposed to risks associated with a weaker global economy and lower reimbursement rates. 

Zacks Rank and Key Picks

Insulet currently carries a Zacks Rank #3 (Hold).

Some other better-ranked stocks which posted solid results this earnings season are Stryker Corporation SYK, Abbott Laboratories ABT and CONMED Corporation CNMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the consensus estimate.

Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Worldwide sales came in at $7.54 billion, beating the consensus estimate of $7.47 billion.

CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Revenues summed $218.4 million, outshining the consensus mark of $213 million.

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