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.

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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.

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5/27/2016 4:00 PM
PODD $30.22 Up +0.72 +2.44%
Insulet CAPS Rating: ***