Insulet (NSDQ:PODD) shares dropped slightly today on first-quarter results that topped the consensus revenue forecast but came up short on earnings.
The Acton, Mass.-based insulin management technology developer posted losses of -$2.1, or -3¢ per share, on sales of $198 million for the three months ended March 31, 2020, for a bottom-line slide into losses from $4.4 million in profits this time last year despite sales growth of 24.1%.
Adjusted to exclude one-time items, losses per share were also -3¢, 3¢ behind Wall Street, where analysts were looking for sales of $189.6 million.
According to a news release, Insulet saw its 61.4% gross margin down 280 points, with an approximately 160-basis point impact from the COVID-19 pandemic and its related safety and mitigation costs.
“Insulet entered 2020 with positive momentum, making progress toward our strategic objectives and achieving strong revenue growth ahead of expectations,” Insulet president & CEO Shacey Petrovic said in the release. “The efficiency and redundancy we have built in our supply chain and manufacturing operations enabled us to meet customer demand without interruption during this challenging time. We believe that our proven, durable annuity business model will continue to generate double-digit revenue growth in 2020.
“We remain confident we have the right strategic framework to effectively advance our mission, drive sustainable long-term growth throughout our global business, and to continue to create shareholder value.”
Unlike most companies that are withdrawing guidance amid the pandemic, Insulet said it anticipates revenue growth of 19% to 23% in 2020.
PODD shares were down -0.1% at $214.99 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.2%.
