Insulet stock surged Thursday after the insulin pump-maker walloped Wall Street's second-quarter forecasts and raised its sales guidance for the year.
The Massachusetts-based medtech company earned an adjusted $1.17 per share on $649.1 million in sales. Earnings more than doubled year over year to beat projections for 92 cents. Sales jumped 32.9% and easily topped expectations for $614.2 million.
Leerink Partners analyst Mike Kratky said this continued "a streak of impressive beat-and-raises."
"With type 2 adoption still early and several software-related updates (e.g. iPhone app and CGM integration), we think second-quarter updates should reiterate the company's momentum from here," William Blair analyst Brandon Vazquez said in a client note. CGM, or continuous glucose monitors, are body-worn devices that register blood sugar levels in real time.
Insulet stock bounded 9.5% higher to 303.55. That pushed shares above their 50-day moving average for the first time since early July.
Insulet Stock: Omnipod's U.S. Dominance
The lion's share of Insulet's sales stemmed from its tubeless insulin pump, Omnipod, which brought in $639 million in sales, growing 33%. In the U.S., Omnipod sales climbed 28.7% to $453.2 million, while sales abroad were $185.8 million, up 45%.
Insulet's drug delivery business generated $10.2 million in sales.
William Blair's Vazquez reiterated his outperform rating on Insulet stock, saying the initial numbers "look positive." Guidance for the year came in at the high end of prior ranges for Omnipod.
For the year, Insulet calls for total sales to rise 24% to 27%, up from its previous guidance for 19% to 22% growth. The Street's forecast for $2.53 billion in sales implies 22% growth. Omnipod sales are expected to grow 25% to 28%, north of Insulet's prior call for 20% to 23% growth.
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