What: Shares of Insulet Corporation , a drug delivery company primarily focused on creating products that treat diabetes, were up more than 10% in early morning trading today after the company reported its third quarter earnings.
So what:Revenue for the quarter grew 16% over the year ago period to $87.3 million, which was well ahead of the $83.8 million that the Street was predicting and topped the company's own guidance of $82 million to $85 million. All four of the company's product lines managed to grow during the period, which is certainly an encouraging sign.
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While the top-line news was good, the company's performance on the bottom-line was disappointing. Insulet produced a net lossof $18.9 million, or $0.33 per share, during the quarter. That result was much worse than the $0.26 that investors were expecting. The primarily cause appears to be $7.7 million product charge that the company took during the period. The company also ramped up its expenses as part of its planned effort to expand its commercial operations, which also contributed the larger than expected loss.
Looking ahead,Insulet now expects full-year revenue to fall between $310 million to $320 million, which is at the high end of its previous guidance of $305to$320 million.
The combination of the revenue beat mixed with the upbeat forecast has put Insulet's investors in a good mood, which is why shares are rising higher today.
Now what: In the release, Patrick Sullivan, Insulet's Chief Executive Officer, stated:
It's been a rough year for Insulet's investors. Even after today's bump, the stock is still down more than 24% since the start of the year. However, the company has now managed to top its revenue estimates for two quarters in a row, which is certainly an encouraging sign. If the company's OmniPod System can continue to perform in a very competitive market then Insulet's top-line should continue to grow quickly.
This shareholder is certainly encouraged by these results and will continue to monitor the company's progress closely.
The article Insulet Corporation Shareholders Are Pumped Up Today -- Here's Why originally appeared on Fool.com.
Brian Feroldi owns shares of Insulet. The Motley Fool recommends Insulet. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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