Insulet Misses Where It Counts

Insulet (Nasdaq: PODD  ) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Insulet met expectations on revenues and missed expectations on earnings per share.

Compared with the prior-year quarter, revenue increased significantly and GAAP loss per share improved.

Gross margins shrank, operating margins expanded, net margins improved.

Revenue details
Insulet recorded revenue of $47.8 million. The 18 analysts polled by S&P Capital IQ looked for revenue of $47.5 million on the same basis. GAAP reported sales were 69% higher than the prior-year quarter's $28.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.31. The 14 earnings estimates compiled by S&P Capital IQ forecast -$0.28 per share. GAAP EPS were -$0.31 for Q1 compared to -$0.22 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.5%, 540 basis points worse than the prior-year quarter. Operating margin was -22.8%, 290 basis points better than the prior-year quarter. Net margin was -31.0%, 390 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $51.6 million. On the bottom line, the average EPS estimate is -$0.25.

Next year's average estimate for revenue is $215.2 million. The average EPS estimate is -$0.89.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 67 members out of 108 rating the stock outperform, and 41 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Insulet a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Insulet is outperform, with an average price target of $23.65.

The health-care investing landscape is littered with also-rans and a few major winners. Is Insulet performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1885005, ~/Articles/ArticleHandler.aspx, 4/21/2014 2:10:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement