Insulet's Strong Q4 Highlights Surging Omnipod Demand And Growth Potential: Analyst

On Thursday, Insulet Corporation PODD reported fourth-quarter adjusted EPS of $1.15, down from $1.40 a year ago but beating the consensus of $1.02.

The automated insulin delivery technology maker reported sales of $597.5 million, up 17.2% year over year (17.1% in constant currency), beating the consensus of $582.81 million, exceeding the guidance range of 12% to 15% in constant currency.

Total Omnipod revenue reached $585.7 million, an increase of 16.9%, or 16.8%, in constant currency. U.S. Omnipod revenue increased 12.4% to $443.7 million, and International Omnipod revenue rose to $142.0 million, an increase of 33.5%, or 33.1%, in constant currency.

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Drug Delivery revenue was $11.8 million, an increase of 34.1%. Gross margin expanded 120 basis points to 72.1%.

Operating income of $109.3 million, or 18.3% of revenue, fell 260 basis points, compared with operating income of $106.4 million, or 20.9% of revenue, in the prior year.

The company reported adjusted EBITDA of $151.2 million, or 25.3% of revenue, compared with $137.0 million, or 26.9% of revenue, in the prior year.

"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 Chief Executive Officer. "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…"

Guidance: For 2025, Insulet expects revenue growth between 16% and 20%. It projects Omnipod sales to increase by 17%-21%. For Q1 2025, Insulet forecasts revenue growth between 22% and 25%, with U.S. Omnipod sales increasing by 21% % to 24%.

William Blair says Insulet's strong fourth-quarter performance confirms its growing momentum in the large, underpenetrated Type 1 and Type 2 diabetes markets.

Analyst Margaret Kaczor Andrew expects this trend to continue in 2025, driven by key growth catalysts that could accelerate adoption and revenue. With shares trading at 8.5 times the midpoint of 2025 sales guidance, William Blair maintains the stock as Outperform.

Price Action: PODD stock is down 2.76% at $280.33 at the last check on Friday.

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