The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Insulet met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Gross margins dropped, operating margins increased, and net margins improved.
Insulet notched revenue of $47.2 million. The 17 analysts polled by S&P Capital IQ expected revenue of $47.4 million. GAAP sales were 70% higher than the prior-year quarter's $27.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.30. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.26 per share. GAAP EPS were -$0.30 for Q4 against -$0.50 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.5%, 730 basis points worse than the prior-year quarter. Operating margin was -22.3%, 40 basis points better than the prior-year quarter. Net margin was -30.4%, 4,470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $47.9 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $217.9 million. The average EPS estimate is -$0.61.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 69 members out of 109 rating the stock outperform, and 40 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Insulet a green thumbs-up, and 12 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 $23.15.
Over the decades, small-cap stocks like Insulet have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Insulet to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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.