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Acton, Massachusetts-based Insulet Corporation (PODD) develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. Valued at a market cap of $19.7 billion, the company’s Omnipod Insulin Management System is equipped with a self-adhesive, small, and lightweight disposable tubeless Omnipod device along with a wireless and handheld Personal Diabetes Manager (PDM). It is expected to announce its fiscal Q4 earnings results after the market closes on Thursday, Feb. 20.
Prior to this event, analysts expect the medical device company to report a profit of $1.05 per share, down 25% from $1.40 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. Its earnings of $0.90 per share in the previous quarter outpaced the consensus estimates by a significant margin of 16.9%.
For fiscal 2024, analysts expect Insulet to report an EPS of $3.22, up 17.1% from a profit of $2.75 in fiscal 2023.
Shares of PODD have soared nearly 39.4% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 25.3% return and the Health Care Select Sector SPDR Fund’s (XLV) 4.1% rise over the same time frame.
PODD’s shares surged 9.4% after the company delivered better-than-expected Q3 adjusted earnings of $0.90 per share and revenues of $543.9 million on Nov. 7. Moreover, the top-line grew by a notable 25.7% year-over-year, while the bottom-line improved by a massive 26.8% from the year-ago quarter. Robust growth in Insulet’s Omnipod revenues and a notable gross and operating margin expansion contributed to its strong performance.
On top of that, the company raised its full-year 2024 revenue guidance to 20%-21% and its Omnipod revenue growth projection to 21%-22%, further bolstering investor confidence.
Wall Street analysts are strongly optimistic about Insulet’s stock, with a "Strong Buy" rating overall. Among 21 analysts covering the stock, 17 recommend a "Strong Buy," one suggests a “Moderate Buy,” and three indicate “Hold.” This configuration is slightly more bullish than three months ago, with 16 analysts suggesting a “Strong Buy.”
The mean price target for PODD is $296.90, which indicates a 5.9% potential upside from the current levels.
