PODD Stock Gains on Q3 Earnings and Revenue Beat, '24 Sales View Up

Insulet Corporation PODD reported third-quarter 2024 adjusted earnings per share (EPS) of 90 cents, up significantly 26.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 16.9%.GAAP EPS was $1.08, up 45.9% from the year-ago figure of 74 cents.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the earnings announcement, PODD’s share price surged 2.9% to $275.7 yesterday.PODD’s Q3 RevenuesRevenues totaled $543.9 million, which beat the Zacks Consensus Estimate by 4.9%. The top line jumped 25.7% year over year (up 25.4% at the constant exchange rate or CER). CER growth exceeded the company’s guidance of 21%.PODD’s Q3 Segmental RevenuesInsulet’s total Omnipod revenues of $533.6 million reflected an increase of 26.4% year over year (up 26.1% at CER). International Omnipod revenues of $138.0 million rose 36.1% (up 34.8% at CER). U.S. Omnipod revenues grew 23.4% year over year to $395.6 million.The Drug Delivery business revenues totaled $10.3 million, flat year over year.PODD’s Q3 MarginsGross profit in the reported quarter was $377.1 million, up 28.6% from the prior-year quarter’s figure. Gross margin of 69.3% expanded 155 basis points year over year.Selling, general & administrative expenses rose 29.6% to $234.1 million.Research and development expenses declined 5.0% year over year to $54.9 million.The operating profit in the quarter totaled $88.1 million, up 60.8% from the year-ago reported actuals. Operating margin of 16.2% expanded 353 basis points year over year.Cash PositionInsulet exited the third quarter of 2024 with cash and cash equivalents of $902.6 million compared with $821 million at the end of the second quarter of 2024.PODD’s 2024 Revenue GuidanceInsulet updated its full-year 2024 projection for revenues. It also issued top-line guidance for fourth-quarter 2024.For 2024, the company now expects revenue growth to be between 20% and 21% (up from the previously projected 16-19%). The Zacks Consensus Estimate for total revenues is pegged at $2.01 billion, suggesting 18.6% growth from the 2023 reported number.Insulet’s total Omnipod revenue growth is expected to be in the range of 21-22% (previously 18-21%). The company expects Drug Delivery revenues to decline 5-10% (previously 40-50%).For the fourth quarter, Insulet projects revenue growth of 12-15%. The Zacks Consensus Estimate for total revenues is pegged at $564.5 million, suggesting 10.7% growth from the fourth quarter of 2023.Total Omnipod revenues are likely to grow 13-16%. Drug Delivery revenue decline is expected to be in the range of 15-20% (approximately $7-$8 million).Insulet Corporation Price, Consensus and EPS Surprise Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation QuoteOur TakeInsulet exited the third quarter of 2024 with better-than-expected earnings and revenues. The company benefited from continued high demand for Omnipod 5, both in the United States and globally. However, the lowering of the Drug Delivery guidance is discouraging.During the reported quarter, Insulet received FDA clearance for Omnipod 5, making it the first and only automated insulin delivery system indicated for both type 1 and type 2 diabetes. Additionally, the company launched Omnipod 5 App for iPhone in the United States.The expansion of both margins is encouraging. The raised 2024 revenue guidance instills optimism among investors.PODD’s Zacks Rank and Other Key PicksPODD currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the broader medical space are Phibro Animal Health PAHC, Quest Diagnostics DGX and HealthEquity HQY.Phibro Animal Health reported fourth-quarter fiscal 2024 adjusted earnings of 41 cents per share, which topped the Zacks Consensus Estimate by 20.6%. Revenues of $273.2 million beat the Zacks Consensus Estimate by 4.1%. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.PAHC’s fiscal 2025 earnings are expected to surge 31.9% compared with the industry’s 11.6% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.1%.Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30 per share, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 at present. DGX’s 2024 earnings are expected to surge 2.1% year over year. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.HealthEquity, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2025 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate by 22.9%. Revenues of $299.9 million topped the Zacks Consensus Estimate by 5.4%.HQY has an estimated long-term earnings growth rate of 28.2% compared with the industry’s 13.4%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.8%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks