A month has gone by since the last earnings report for Insulet (PODD - Free Report) . Shares have added about 5.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Insulet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Insulet Gains From Strength in Omnipod system in the U.S. in Q4
Insulet reported earnings per share (EPS) of 16 cents in fourth-quarter 2018 against net loss of 12 cents a year ago. The figure also surpassed the Zacks Consensus Estimate of earnings of 6 cents by 166.7%.
EPS in 2018 was 5 cents against a net loss of 46 cents in the year-ago quarter. The figure compares favorably with the Zacks Consensus Estimate of a loss of 5 cents.
Revenues in Detail
Revenues in the fourth quarter totaled $164.9 million, beating the Zacks Consensus Estimate by 1.6%. Moreover, the top line improved 26.4% from the year-ago quarter.
Per management, the company’s direct European operations, progress in market access initiatives, build out of the U.S. manufacturing facility and the limited commercial launch of the Omnipod DASH system drove revenues. An expanding global customer base also played a role.
Revenues in 2018 came in at $563.8 million, up 21.6% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $561.3 million.
Insulet reported fourth-quarter 2018 U.S. Omnipod revenues of $93.2 million, reflecting an increase of 22% year over year.
International Omnipod revenues of $55 million rose 54%.
Revenues at the Drug Delivery business totaled $16.7 million, down 8% year over year.
Gross profit in the reported quarter grossed $110.3 million, up 38.7% from the prior-year quarter. Gross margin came in at 66.9%, up 600 basis points (bps) on continuous improvement in manufacturing and supply chain operations. Furthermore, successful transition to direct operations in Europe led to an added benefit of 400 bps to the gross margin.
Total operating expenses came in at $94.1 million compared with $80.3 million in the prior-year quarter. Operating income in the reported quarter was $16.2 million against net operating $0.77 million loss of in the year-earlier quarter.
For 2019, the company expects revenues in the range of $662-$687 million, compared to 2018 revenues of $563.8 million. This reflects growth of roughly 17-22%. The Zacks Consensus Estimate for revenues is pegged at $689.8 million, above the guided range.
For the first quarter of 2019, Insulet expects revenues in the band of $152-156 million, reflecting growth of approximately 23-27% compared with $123.6 million in the year-ago quarter. The Zacks Consensus Estimate for the metric is pegged at $155.9 million, near the high end of the guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted -36.36% due to these changes.
Currently, Insulet has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Insulet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.