The Acton, Mass.-based wearable insulin delivery system developer posted profits of $14.4 million, or 22¢ per share, on sales of $226.3 million for the three months ended June 30, 2020, for a bottom-line gain of nearly ten times as much as last year’s second-quarter profits on sales growth of 27.8%.
Adjusted to exclude one-time items, earnings per share were also 22¢, coming in well ahead of the Wall Street projections of $0.00 per share. Revenues beat the analysts’ projections by 6.8%.
The company noted a large impact from the COVID-19 pandemic on its gross margin, highlighting a 63% decline because of the related safety and mitigation costs.
“Thanks to our team’s relentless focus on our mission and the strength and durability of our recurring revenue model, we delivered another quarter of financial and operational results that exceeded our expectations,” Insulet president & CEO Shacey Petrovic said in a news release. “Our strong financial profile allows us to continue to invest in our business and advance important initiatives, including continuing clinical trials, maintaining an uninterrupted supply of Omnipod, and growing our global customer base.
“We are confident in the steps we are taking to mitigate the impact of COVID-19 on our business and we remain well-positioned to drive robust organic growth and value creation, and deliver on our mission to improve the lives of people with diabetes.”
Insulet expects COVID-19 to continue having an impact on its operations, but raised its revenue guidance growth range from 15% to between 17% and 19%.
PODD shares were up 4.3% at $229.91 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 0.4%.