What's happening: Shares of Insulet Corporation (NASDAQ:PODD) briefly fell by 12% today on the back of the company's second-quarter earnings report released after the bell yesterday. Although the company beat consensus on revenue by $4.85 million with $75.6 million in revenue during the quarter, investors appear to be keying in on Insulet's hefty miss on earnings. Specifically, Insulet reported a net loss of $0.27 per share, whereas the Street was expected a far lower figure of a $0.13 loss per share.

Why it's happening: The underlying reason behind this huge earnings miss apparently reflects a mixture of a drop in the company's gross margins from 45.5% in the second-quarter of 2015, compared to 49.7% a year ago, a 14% increase in operating expenses to $46.7 million for the quarter, and a $3 million net interest expense on a convertible note. Unfortunately, the substantial rise in revenue and concomitant decrease in administrative expenses during the quarter weren't enough to offset these negative impacts to the company's bottom-line. 

On the bright side, Insulet did reaffirm its full-year guidance range of $305 million to $320 million today, triggering a price target upgrade from Piper Jaffray to $41 per share. Given that the company's drug delivery platform is generating stellar sales growth, and its flagship insulin management system, Omnipod, is holding steady sales-wise, this stock could see a nice uptick in earnings over the next year or so. As such, investors may want to consider picking up some shares on this dip.