Insulet misses first-quarter profit estimates as marketing costs weigh

By Thomson Reuters May 9, 2024 | 4:51 PM

(Reuters) – Insulet Corp reported first-quarter profit that missed market expectations on Thursday, weighed by higher marketing expenses, sending shares of the medical device maker down 3.7% in extended trading.

The company’s quarterly selling, general and administrative expenses rose 22.7%, to $199.7 million versus a year earlier.

The Massachusetts-based company, however, raised its annual revenue growth forecast, banking on strong sales of its wearable, tubeless insulin pumps.

It now sees full-year revenue growth between 14% and 18%, up from 12% to 17% growth expected previously and above analysts’ average estimates of 15.62%, according to LSEG data.

Insulet manufactures and sells insulin delivery devices under the Omnipod brand, which eliminate the need for multiple daily injections using syringes or insulin pens for people with insulin-dependent diabetes.

The company’s total revenue rose more than 23% to $441.7 million for the quarter ended March 31, compared with analysts’ estimate of $424.05 million.

Revenue from Omnipod is expected to grow in the range of 15% to 19% for 2024, mid-point of which is slightly above analysts average estimate of 16.37%.

On an adjusted basis, the company earned a profit of 23 cents per share below estimates of 39 cents per share.

(Reporting by Pratik Jain in Bengaluru; Editing by Tasim Zahid)