Insulin Pump Maker Insulet's Growth Catalysts Set to Boost Revenue in 2025: Analyst

Insulin device maker Insulet Corporation PODD reported a second-quarter adjusted EPS of $0.55 on Thursday, missing the consensus estimate of $0.56. It reported an EPS of $0.38 a year ago.

The company reported sales of $488.5 million, beating the consensus of $463.31 million, which is in line with the preliminary earnings reported in July.

The sales increased 23.2% year over year, or 23.4% in constant currency, exceeding the company’s guidance of 18% due to revenue outperformance for all product lines.

Omnipod revenue of $480.4 million, an increase of 26.3% (+26.5% in constant currency)

U.S. Omnipod revenue of $352.3 million, an increase of 27.3%

International Omnipod revenue of $128.1 million, an increase of 23.5%, or 24.4% in constant currency

“We remain the clear leader in our industry, and in light of our first half results and our confidence in delivering an even stronger second half, we have increased our full year guidance for revenue, gross margin and operating margin. We are poised for continued profitable growth…,” said Jim Hollingshead, President and CEO.

Guidance: Insulet raised 2024 revenue growth from 14%-18% to 16%-19%, with Omnipod sales growth of 18%-21% (previously 15%-19%).

For the third quarter, the company expects revenue growth of 18%-21%, with Omnipod sales growth of 21%-24%.

For 2024, Insulet now expects to be closer to the high end of the guidance range of 68%- 69% (previously closer to the mid-point), with an operating margin of approximately 14.0% (previously approximately 13.5%).

William Blair notes that the quarter’s strong performance is driven by accelerating conversions to multiple daily injections (MDI) in the U.S. and globally, which is the key factor behind Insulet’s current and future growth and value.

“Though there may be some focus on lower competitive conversions than previously expected in guidance (we believe this impact is small, in the low-single-digit thousands of patients), this has never been a key part of our thesis with Omnipod,” William Blair’s analyst writes.

William Blair anticipates that Insulet will experience a series of catalysts this year, driving accelerated new patient additions in the second half. This momentum is expected to increase revenue growth, especially in 2025. The analyst maintains the Outperform rating.

Price Action: PODD stock is down 7.35% at $185.11 at last check on Friday.

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