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Why Diabetes Stock Insulet Soared 28% in November

What happened

Shares of Insulet (NASDAQ: PODD) surged 27.8% in November, according to data from S&P Global Market Intelligence. The S&P 500 returned 3.6% last month.

The Boston-area healthcare company is the leader in tubeless insulin pump technology with its Omnipod pump.

Insulet stock has now pumped out a gain of 129% in 2019 through Dec. 2, compared with the broader market's 26.5% return.

Image source: Getty Images.

So what

We can attribute Insulet stock's robust performance last month to the company's Nov. 5 release of its third-quarter results, which were better than Wall Street and many investors were expecting, and to management once again raising its full-year 2019 revenue guidance. Shares popped 10.5% on the day following the release and continued to climb higher throughout the month.

In Q3, Insulet's revenue soared 27% year over year to $192.1 million, easily topping the $179.5 million Wall Street expectation. Adjusted earnings per share (EPS) tripled to $0.09, crushing the analyst consensus estimate of $0.03.

Now what

For the fourth quarter, Insulet guided for revenue growth of about 17% to 22% year over year. And for full-year 2019, it expects revenue to increase about 28% to 29%, up from its previous outlook of 24% to 27% growth. The company doesn't provide earnings guidance.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool recommends Insulet. The Motley Fool has a disclosure policy.


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