Insulet Earnings: Here’s Why Investors are Ambivalent Now

Insulet Corporation (NASDAQ:PODD) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Insulet Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.2 in the quarter versus EPS of $-0.30 in the year-earlier quarter.

Revenue: Rose 17.73% to $60.09 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Insulet Corporation reported adjusted EPS loss of $0.2 per share. By that measure, the company missed the mean analyst estimate of $-0.19. It missed the average revenue estimate of $60.47 million.

Quoting Management: “This was an outstanding quarter for Insulet, with demand for the new OmniPod exceeding our expectations,” said Duane DeSisto, President and Chief Executive Officer of Insulet. “With a greater than 50% year over year increase, we shipped a record setting level of initial orders of the OmniPod in the second quarter. This robust demand drove strong financial results, and we generated positive quarterly cash flow for the first time in Insulet’s history. Enthusiasm for the new OmniPod has been strong as the simplicity of the OmniPod’s smaller design, coupled with the updated insulin-on board methodology is appealing to both customers and healthcare professionals. We commenced the transition of our existing customer base to the new OmniPod in June and expect the vast majority of customers to be transitioned by the end of the third quarter.”

Key Stats (on next page)…

Revenue increased 4.76% from $57.36 million in the previous quarter. EPS decreased to $-0.2 in the quarter versus EPS of $-0.20 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.14 and has not changed. For the current year, the average estimate has moved up from a loss of $0.59 to a loss of $0.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)