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. 

George Budwell has no position in any stocks mentioned. The Motley Fool recommends Insulet. 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.