Shares of
Insulet
were soaring Friday after the automated insulin technology developer boosted its revenue outlook.
Insulet
(ticker: PODD) stock was up 15% to $161.17, putting it on pace for its largest percent increase since Nov. 4, 2022, when it gained 23%, according to Dow Jones Market Data. It was also was one of the top-performing stocks in the
S&P 500.
The company on Thursday posted third-quarter earnings of 74 cents a share, easily beating Wall Street’s call for 40 cents, according to FactSet. In the year-ago quarter, it reported a loss of 8 cents a share.
Revenue was $432.7 million, also rising from $340.8 million a year ago and above analysts’ expectations of $414.3 million. Total revenue from its Omnipod brand—products that use its tubeless insulin pump technology—jumped 29.4%.
“As a result of continued high demand for Omnipod 5—both in the U.S. and globally—we are pleased to again raise guidance for the full year,” said President and CEO Jim Hollingshead in the earnings release.
For the full year, the company raised its expected revenue growth to a range of 26% to 27%, compared with a prior range of 22% to 25%.
William Blair analysts led by Margaret Kaczor Andrew, who rate shares at Outperform, were pleased with the quarterly report.
“In sum, fundamentals and the outlook for the company remain as strong as ever, in our view, with management projecting even more confidence by providing 2024 color that is ahead of consensus,” the analysts wrote in a note on Friday.
Raymond James analysts Jayson Bedford and Glenn Shell, who rate shares at Outperform, cut their price target to $199 from $228 but raised revenue estimates.
“PODD’s pipeline is progressing well, and should expand the TAM and its geographical reach,” they wrote, calling the company “one of the more misunderstood growth names in Medical Technology.”
Write to Emily Dattilo at emily.dattilo@dowjones.com
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