We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Insulet Corporation (PODD - Free Report) reported adjusted earnings per share (EPS) of 38 cents for second-quarter 2023, marking a significant improvement from the year-ago period’s adjusted net loss of 6 cents per share.
Second-quarter 2023 adjusted earnings exceeded the Zacks Consensus Estimate by 58.3%.
The quarter’s adjustment excludes a charge associated with a voluntary medical device correction notice issued to replace the Omnipod DASH Personal Diabetes Managers.
GAAP EPS was 39 cents against a net loss of 50 cents per share in the year-ago period.
Revenues
Revenues in the second quarter totaled $396.5 million, beating the Zacks Consensus Estimate by 3.3%. Moreover, the top line jumped 32.4% from the year-ago quarter’s number (up 32.2% at the constant exchange rate or CER). Quarterly revenues exceeded the company’s previous growth expectations of 27-30%.
Segment in Detail
Insulet’s Total Omnipod revenues of $380.5 million reflected an increase of 33.2% year over year (up 33% at CER). International Omnipod revenues of $103.7 million rose 16% (up 15.5% at CER). U.S. Omnipod revenues grew 40.9% year over year to $276.8 million.
Insulet Corporation Price, Consensus and EPS Surprise
Omnipod 5 continues to gain market share in the diabetes technology market as the only FDA-approved fully disposable, pod-based automated insulin delivery system.
The Drug Delivery business revenues totaled $16 million, up 17.6% year over year.
Margins
Gross profit in the reported quarter was $264.9 million, up 39.2% from the prior-year quarter. Gross margin of 66.8% expanded 325 basis points year over year.
Selling, general & administrative expenses rose 2.5% to $178.7 million. Research and development expenses rose 29.3% year over year to $55.1 million.
The operating profit in the quarter was $31.1 million against the year-ago quarter operating loss of $26.7 million.
Cash Position
Insulet exited the second quarter of 2023 with cash and cash equivalents of $660.1 million, compared with $620.7 million at the end of the first quarter.
2023 Guidance
Insulet has updated its guidance for 2023.
For 2023, the company has raised its revenue growth guidance to the range of 22-25% (from the earlier band of 18-22%). The Zacks Consensus Estimate for total revenues is pegged at $1.57 billion, implying 20.3% growth from the year-ago reported number.
Insulet’s Total Omnipod revenue growth is now expected in the range of 25-28% (21-25% expected previously). The company has narrowed its expectation of Drug Delivery revenue decline to 45-50% (previous expectation was a decline of 45-55%).
For the third quarter of 2023, Insulet projects revenue growth of 18-21%. The Zacks Consensus Estimate for total revenues is pegged at $397.3 million.
Total Omnipod revenues are likely to grow 20-23%. However, Drug Delivery revenues are expected to fall in the range of 25-30%.
Our Take
Insulet exited the second quarter of 2023 with better-than-expected earnings and revenues. The company’s performance benefited from global Omnipod growth of 33%. Omnipod 5 continued to be a driving force behind Insulet’s strong U.S. growth in the second quarter. U.S. Omnipod revenue growth was 41%, exceeding the company’s guidance range. Revenue growth continued to be driven by Insulet’s annuity-based model with consecutive record new customer starts and growing U.S. pharmacy volume. The raised 2023 guidance is a major upside.
However, supply chain disruptions and inflationary pressure continue to challenge business operations. Increasing expenses are putting pressure on margins.
Zacks Rank and Key Picks
Insulet currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank #2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Insulet (PODD) Q2 Earnings Beat, Sales Growth View Raised
Insulet Corporation (PODD - Free Report) reported adjusted earnings per share (EPS) of 38 cents for second-quarter 2023, marking a significant improvement from the year-ago period’s adjusted net loss of 6 cents per share.
Second-quarter 2023 adjusted earnings exceeded the Zacks Consensus Estimate by 58.3%.
The quarter’s adjustment excludes a charge associated with a voluntary medical device correction notice issued to replace the Omnipod DASH Personal Diabetes Managers.
GAAP EPS was 39 cents against a net loss of 50 cents per share in the year-ago period.
Revenues
Revenues in the second quarter totaled $396.5 million, beating the Zacks Consensus Estimate by 3.3%. Moreover, the top line jumped 32.4% from the year-ago quarter’s number (up 32.2% at the constant exchange rate or CER). Quarterly revenues exceeded the company’s previous growth expectations of 27-30%.
Segment in Detail
Insulet’s Total Omnipod revenues of $380.5 million reflected an increase of 33.2% year over year (up 33% at CER). International Omnipod revenues of $103.7 million rose 16% (up 15.5% at CER). U.S. Omnipod revenues grew 40.9% year over year to $276.8 million.
Insulet Corporation Price, Consensus and EPS Surprise
Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote
Omnipod 5 continues to gain market share in the diabetes technology market as the only FDA-approved fully disposable, pod-based automated insulin delivery system.
The Drug Delivery business revenues totaled $16 million, up 17.6% year over year.
Margins
Gross profit in the reported quarter was $264.9 million, up 39.2% from the prior-year quarter. Gross margin of 66.8% expanded 325 basis points year over year.
Selling, general & administrative expenses rose 2.5% to $178.7 million. Research and development expenses rose 29.3% year over year to $55.1 million.
The operating profit in the quarter was $31.1 million against the year-ago quarter operating loss of $26.7 million.
Cash Position
Insulet exited the second quarter of 2023 with cash and cash equivalents of $660.1 million, compared with $620.7 million at the end of the first quarter.
2023 Guidance
Insulet has updated its guidance for 2023.
For 2023, the company has raised its revenue growth guidance to the range of 22-25% (from the earlier band of 18-22%). The Zacks Consensus Estimate for total revenues is pegged at $1.57 billion, implying 20.3% growth from the year-ago reported number.
Insulet’s Total Omnipod revenue growth is now expected in the range of 25-28% (21-25% expected previously). The company has narrowed its expectation of Drug Delivery revenue decline to 45-50% (previous expectation was a decline of 45-55%).
For the third quarter of 2023, Insulet projects revenue growth of 18-21%. The Zacks Consensus Estimate for total revenues is pegged at $397.3 million.
Total Omnipod revenues are likely to grow 20-23%. However, Drug Delivery revenues are expected to fall in the range of 25-30%.
Our Take
Insulet exited the second quarter of 2023 with better-than-expected earnings and revenues. The company’s performance benefited from global Omnipod growth of 33%. Omnipod 5 continued to be a driving force behind Insulet’s strong U.S. growth in the second quarter. U.S. Omnipod revenue growth was 41%, exceeding the company’s guidance range. Revenue growth continued to be driven by Insulet’s annuity-based model with consecutive record new customer starts and growing U.S. pharmacy volume. The raised 2023 guidance is a major upside.
However, supply chain disruptions and inflationary pressure continue to challenge business operations. Increasing expenses are putting pressure on margins.
Zacks Rank and Key Picks
Insulet currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank #2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.