Crispr Therapeutics shares tumble after significant earnings miss
On Friday, BTIG analyst Marie Thibault increased the price target for Insulet Corporation (NASDAQ:PODD) shares to $330 from the previous target of $310, while reiterating a Buy rating on the stock. The adjustment comes after Insulet reported first-quarter revenues of $569.0 million, a 28.8% year-over-year increase, and a 29.8% increase on a constant currency basis, surpassing the consensus by approximately $26 million. With a market capitalization of $18.08 billion, Insulet maintains a "GREAT" financial health score according to InvestingPro analysis, which shows the company’s strong operational performance and market position.
Insulet’s revenue for the first quarter outperformed the company’s own guidance, which projected growth of 22-25% year-over-year on a constant currency basis. The U.S. Omnipod product line contributed $401.7 million, up 26.4% year-over-year, exceeding expectations by around $12 million. The International Omnipod revenues also beat forecasts, delivering $152.4 million, a 32.2% increase year-over-year, and 36.1% on a constant currency basis, which was $7 million above consensus. Drug Delivery sales nearly doubled expectations, coming in at $14.9 million. This strong performance aligns with the company’s impressive last-twelve-month revenue growth of 23.49% and robust current ratio of 4.47, indicating excellent liquidity management.
The company saw growth in new patient starts both in the U.S. and internationally, with more than 85% of new starts transitioning from multiple daily injections and over 30% of new U.S. starts being Type 2 diabetes patients. Insulet’s margins were also robust, with an adjusted gross margin of 71.9%, compared to the consensus estimate of 69.7%, and an adjusted EBIT margin of 16.4%, outperforming the consensus of 13.6%. InvestingPro data reveals that the company maintains a strong gross profit margin of 70.39% over the last twelve months, demonstrating consistent operational efficiency. Discover more detailed insights and 10+ additional ProTips about Insulet’s financial performance with an InvestingPro subscription.
Looking ahead, Insulet has raised its full-year 2025 revenue growth guidance by 2.5 percentage points at the midpoint. This includes a 1.5 percentage point increase for U.S. Omnipod, a 4.5 percentage point constant currency increase for International Omnipod, and a 20 percentage point increase for Drug Delivery. For the second quarter, the company is forecasting a 24-27% year-over-year GAAP growth, which is above the consensus expectation of 18.3%.
Despite the potential for a slowdown in growth in the second half of the year, the company’s guidance suggests a conservative approach as new management awaits further evidence of momentum before potentially revising its guidance upwards again. Insulet is positioned to navigate macroeconomic uncertainty well, with the majority of its U.S. product manufactured domestically in Acton, Massachusetts, allowing it to mitigate the impact of tariffs.
New CEO Ashley McEvoy expressed optimism about Insulet’s commercial efforts and pipeline while maintaining a focus on improving operating margins. Thibault’s price target increase reflects confidence in Insulet’s performance and outlook, applying an 8x EV/Sales multiple to the 12-24 month sales forecast.
In other recent news, Insulet Corporation reported a strong financial performance for the first quarter of 2025, surpassing Wall Street’s expectations. The company achieved earnings per share of $1.02, well above the forecasted $0.79, and generated revenue of $569 million, exceeding the anticipated $543.22 million. The company’s revenue grew by 30% year-over-year, with a notable improvement in gross margin to 71.9%. Insulet’s success was driven by the continued rollout of its Omnipod 5 system, which has been instrumental in its growth strategy. Additionally, the company announced plans to expand its market presence in the Middle East and emphasized its commitment to innovation and global expansion. Analysts from firms like Bank of America and JPMorgan have shown interest in the company’s strategies, particularly in the Type 2 diabetes market, which is seeing significant traction. Insulet has also taken strategic actions to strengthen its financial flexibility, including issuing senior unsecured notes and expanding its credit facilities.
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