Insulet (NSDQ:PODD) shares spiked today after the medical device company reported record revenues for the 2nd quarter and said it logged its 1st positive quarterly cash flow.
Bedford, Mass.-based Insulet posted losses of $10.5 million, or 20¢ per share, on sales of $60.1 million for the 3 months ended June 30, lowering its losses by 27.3% and boosting sales by 17.7% compared with Q2 2012.
The losses per share beat expectations on Wall Street by a penny. That, and the positive cash flow, combined to send PODD shares to a 52-week high of $34.40 each today. The stock was up 10.4% to $33.86 apiece as of about 1:50 p.m.
"This was an outstanding quarter for Insulet, with demand for the new OmniPod exceeding our expectations," president & CEO Duane DeSisto said in prepared remarks. "With a greater than 50% year-over-year increase, we shipped a record-setting level of initial orders of the OmniPod in the 2nd quarter. This robust demand drove strong financial results, and we generated positive quarterly cash flow for the 1st time in Insulet’s history. Enthusiasm for the new OmniPod has been strong as the simplicity of the OmniPod’s smaller design, coupled with the updated insulin-on board methodology is appealing to both customers and healthcare professionals. We commenced the transition of our existing customer base to the new OmniPod in June and expect the vast majority of customers to be transitioned by the end of the 3rd quarter."
Insulet narrowed its sales outlook for the rest of the year, saying it now expects revenues of $242 million to $252 million, from prior guidance of $240 million to $255 million. Third-quarter sales are pegged at $60 million to $64 million. Both guidances assume a $5 million hit during both the 3rd and 4th quarters on the impact of Medicare’s Round 2 competitive bidding program, according to a press release.
