Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
The drug delivery specialist once again experienced revenue growth in all business lines and raised its full-year 2016 revenue guidance.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Alert: Top Cash Back Card Now Offers 0% Intro APR Until Nearly 2027
Enjoy 0% intro APR on purchases and balance transfers for 15 months—plus up to 5% cash back in popular categories.
Motley Fool Returns
Market-beating stocks from our flagship service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 2025-08-29 15:01:59.435345.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Image source: Insulet.
Insulet (PODD +0.00%) reported its third-quarter 2016 earnings after the market closed on Thursday. The drug delivery company, which is a leader in tubeless insulin pump technology with its OmniPod System, delivered revenue growth that exceeded its expectations and, as it did last quarter, raised full-year 2016 guidance.
Shares of Insulet pumped up roughly 15% in trading on Friday.
|
Metric |
Q3 2016 |
Q3 2015 |
Growth (YOY) |
|---|---|---|---|
|
Revenue from continuing operations |
$94.9 million |
$71.4 million |
33% |
|
Operating income |
$2.4 million |
($14.8 million) |
N/A |
|
Net income from continuing operations |
($3.0 million) |
($18.0 million) |
N/A |
|
Net income |
($3.1 million) |
($18.9 million) |
N/A |
|
Earnings per share |
($0.05) |
($0.34) |
N/A |
|
Earnings per share adjusted for discontinued operations |
($0.05) |
($0.32) |
N/A |
Revenue exceeded the company's guidance of $88 million to $91 million. Insulet does not provide earnings guidance.
Wall Street was expecting an adjusted EPS loss of $0.09 on revenue of $89.74 million, so Insulet cruised by both estimates. Long-term investors shouldn't give too much credence to analysts' estimates since Wall Street is focused on the short term. However, they can be handy to know because along with forward guidance they often help explain market reactions.
Sullivan outlined the company's positive momentum in the press release:
We continued to achieve growth across all business lines, generating better-than-anticipated revenue and driving additional gross margin expansion in the third quarter. We are successfully implementing our commercial and operational initiatives, as well as continuing to take steps forward in our product pipeline development efforts, including our artificial pancreas program. Longer term, we remain focused on delivering sustainable and profitable growth and increasing value for our shareholders.
As it did last quarter, Insulet hiked its full-year 2016 revenue guidance. It also established Q4 revenue guidance as follows:
|
Period |
Revenue Guidance |
Pro Forma* Growth YOY |
|---|---|---|
|
Q4 2016 |
$99 million to $102 million |
20% at mid-point of range |
|
FY 2016 |
$362 million to $365 million (up from $345 million to $355 million) |
38% at mid-point of range |
*Pro forma growth excludes 2015 revenue contributed by Neighborhood Diabetes, which Insulet sold in Feb. 2016. Data source: Insulet.
Sullivan said on the call that the company expects U.S. Omnipod year-over-year revenue growth of approximately 20%, up from its previous guidance of upper teens; international Omnipod growth of approximately 80%, up from its previous guidance of 65%; and drug delivery growth of approximately 90%, which represents $4 million more than its previous expectations.