News

Insulet Corp. Reports Strong Q3 Results, Increases Revenue Projection

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4.3

Andrew R. Michaud

• November 03, 2023

Insulet Corp., a leading insulin pump maker, has announced its impressive third-quarter financial results and raised its revenue projection for the year. This development comes as a relief for investors, as there were concerns that the rising popularity of diabetes drugs would impact the demand for Insulet's products.

Stellar Performance in Q3

In the quarter ending September, Insulet recorded a significant turnaround. The company achieved a net income of $51.9 million, equivalent to 74 cents per share. This is a remarkable improvement compared to the loss of $5.2 million (8 cents per share) reported during the same period last year. After eliminating certain one-off items, Insulet's adjusted earnings stood at 71 cents per share, surpassing the average analyst target of 40 cents per share determined by FactSet.

Raised Revenue Projection for 2023

In addition to its outstanding performance in Q3, Insulet has also revised its revenue growth projection for 2023. The company now anticipates a growth rate of 26% to 27%, up from the previously projected range of 22% to 25%. This adjustment translates to a revenue expectation between $1.64 billion and $1.65 billion, representing a substantial increase from the $1.3 billion revenue generated this year.

Addressing Concerns about Market Shrinking

Despite these positive developments, Insulet's shares have experienced a decline of over 52% year-to-date. The primary cause for this downward trend has been the fear surrounding the surge in popularity of GLP-1 drugs, such as Novo Nordisk's Ozempic and Wegovy. Investors worried that the growing market for these medications might impede demand for Insulet's products.

In conclusion, Insulet Corp. continues to perform exceptionally well, culminating in a profitable third quarter and an improved revenue projection for the coming years.