Insulet Corporation PODD reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.15, down significantly 17.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 9.5%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

GAAP EPS was $1.39, down 3.5% from the year-ago figure of $1.44.

Full-year 2024 EPS of $3.24 increased 17.8% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.6%.

Following the earnings announcement, PODD’s share price lost 3.6% at after-market trading yesterday.

PODD’s Revenues

Revenues totaled $597.5 million, which beat the Zacks Consensus Estimate by 2.7%. The top line jumped 17.2% year over year and 17.1% at constant exchange rate or CER. CER growth exceeded the company’s guidance of 12-15%. 

The company reported full-year 2024 revenues of $2.10 billion, which increased 22.1% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 1.9%. 

PODD’s Q4 Segmental Revenues

Insulet’s total Omnipod revenues of $585.7 million reflected an increase of 16.9% year over year and 16.8% at CER. International Omnipod revenues of $142.0 million rose 33.5% (up 33.1% at CER). U.S. Omnipod revenues grew 12.4% year over year to $443.7 million.

The Drug Delivery business revenues totaled $11.8 million, reflecting an increase of 34.1% year over year.

PODD’s Q4 Margins

Gross profit in the reported quarter was $430.9 million, up 19.3% from the prior-year quarter’s figure. Gross margin of 72.1% expanded 127 basis points year over year.

Selling, general & administrative expenses rose 22.6% to $261.0 million.

Research and development expenses rose 44.3% year over year to $60.6 million.

The operating profit in the quarter totaled $109.3 million, up 2.7% from the year-ago reported actuals. Operating margin of 18.3% contracted 258 basis points year over year.

Cash Position

Insulet exited 2024 with cash and cash equivalents of $953.4 million compared with $704.2 million at the end of 2023. 

PODD’s 2025 Revenue Guidance

Insulet provided its full-year 2025 projection for revenues. It also issued top-line guidance for first-quarter 2025.

For 2025, the company now expects revenue growth to be between 16% and 20%. The Zacks Consensus Estimate for total revenues is pegged at $2.42 billion, suggesting 17.9% growth from the 2024 reported number.

Insulet Corporation Price, Consensus and EPS Surprise

Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote

Insulet’s total Omnipod revenue growth is expected to be in the range of 17% and 21%. The company expects Drug Delivery revenues to decline 45-55%. 

For the first quarter, Insulet projects revenue growth of 22-25%. The Zacks Consensus Estimate for total revenues is pegged at $538.9 million, suggesting 22% growth from the first quarter of 2024.

Total Omnipod revenues are anticipated to grow 23-26%. Drug Delivery revenue decline is expected to be in the range of 5-10%. 

Our Take

Insulet exited the fourth quarter of 2024 with better-than-expected earnings and revenues. The company benefited from continued high demand for Omnipod 5, both in the United States and globally. Additionally, the increasing Drug Delivery sales is encouraging.

During the reported quarter, Insulet announced Omnipod 5 integration with Abbott’s FreeStyle Libre 2 Plus continuous glucose monitor (CGM) sensor in the United Sates. Additionally, the company launched Omnipod 5 in Italy, Denmark, Finland, Norway, and Sweden with Abbott’s FreeStyle Libre 2 Plus and Dexcom’s G6 CGM sensors. 

However, the contraction of operating margin is discouraging. 

PODD’s Zacks Rank and Key Picks

PODD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, ResMed RMD and Cardinal Health CAH. 

Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%. 

DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. It beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.

ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which beat the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion beat the Zacks Consensus Estimate by 1.6%.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which topped the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

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