Insulet stock broke out early Friday after the insulin pump-maker beat the Street's first-quarter forecasts and raised its outlook for the year.
Revenue surged nearly 29% year over year to $569 million. Not only did that beat forecasts for $543 million, it was the company's best growth since December 2023. Excluding the impact of exchange rates, sales climbed 30%. Insulet is best known for its wearable insulin pump, Omnipod.
The company also earned an adjusted $1.02 per share. Earnings popped nearly 23% and easily beat Wall Street's projection for 79 cents, according to FactSet.
Insulet's strong report follows the recent appointment of Ashley McEvoy as the company's president and chief executive officer. McEvoy succeeded Jim Hollingshead who ceased his employment and resigned from the board of directors on April 28. Hollingshead is now consulting for Insulet.
"As Insulet's new President and CEO, I see a path to scale the Company from an emerging diabetes leader to a durable growth engine, driving an even greater impact for our partners, stakeholders, and most importantly, our Podders," McEvoy said in a written statement. "Podders" refers to the people who use Insulet automatic insulin pump, Omnipod.
Insulet stock rose 20.9%, closing at 310.67. Shares broke out of a consolidation with a buy point at 289.46, according to MarketSurge.
Insulet Stock: Omnipod Boasts Strong Growth
During the quarter, U.S. Omnipod sales advanced more than 26% to $401.7 million, while sales in the international market grew north of 32% to $152.4 million. The smaller drug delivery business brought in $14.9 million in sales.
William Blair analyst Margaret Kaczor Andrew noted new patient additions increased sequentially in the first quarter "despite what tends to be a seasonally softer period." This implies commercial momentum is building, she said in a report.
Investors are now closely watching the market for type 2 diabetes. Insulet's Omnipod won approval for type 2 diabetics last fall.
Andrew reiterated her outperform rating on Insulet stock.
"The quarter updates were positive and supportive of our view that Insulet remains in the pole position as the pump market is on the steep part of the adoption curve by insulin-intensive diabetics in the U.S.," she said. "This has led to — and should continue to lead to — margin expansion."
On that note, gross margin hit 72% in the first quarter, beating Andrew's call for 70%.
Insulet Raises Its Outlook
Following the strong report, Insulet raised its guidance for the year. The company now projects total sales increasing 19% to 22%, up from its prior range of 16% to 20%. U.S. sales of Omnipod, its biggest segment, are expected to increase 18% to 21%, with international sales growing 27% to 30%.
The guidance boost tops analysts' forecast for $2.45 billion, which would represent just north of 18% sales growth for the year.
"We believe management's updated guidance of 18%-21% for the U.S. is likely achievable and conservative," Andrew said.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
