What happened After the release of second-quarter revenue results on Monday that were better than industry watchers were expecting, Insulet's (NASDAQ: PODD) shares were surging 20.8% higher at 2:45 p.m. EDT on Tuesday. So what More than 30 million Americans are diagnosed with diabetes, including more than 1 million people with type 1 diabetes who require constant blood sugar monitoring and regular dosing of insulin to delay disease progression. IMAGE SOURCE: GETTY IMAGES. Historically, type 1 patients have used multiple daily fingersticks and insulin injections to manage their disease. Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM). Unlike competing pumps, Insulet's insulin pump -- Omnipod -- is the only tubeless option available to patients. Omnipod users simply apply the device, which lasts 72 hours, to their skin, and then they control dosing via a separate handheld device. In the second quarter, increasing adoption of Omnipod translated into Insulet revenue of $177.1 million, up 43% from the same quarter last year. Omnipod sales were $160.8 million, an increase of 51% year over year. The remaining sales were associated with using medicines other than insulin in Omnipod pumps. Gross margin was 65.7% in the second quarter, down 30 basis points year over year, because of investments in a new automated manufacturing line. The dip in margin was more than made up for by sales growth and controlled operating expenses, so Insulet's net income in the period improved to $1.4 million from a loss of $1.7 million one year ago. Now what The better top-line performance has prompted management to raise its full-year sales forecast to at least $700 million from prior guidance for at least $667 million. If it delivers on that target, it would represent a 24% increase from 2018. Further out, the company continues to develop its Horizon automated insulin system, which automatically doses insulin based on readings from DexCom's continuous glucose monitors. Earlier this year, Insulet released data suggesting Horizon may help keep patient's within their desired blood glucose range more often. A Horizon launch is planned for late in 2020 after clinical trials wrap up. 10 stocks we like better than InsuletWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Insulet wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Todd Campbell owns shares of DexCom. His clients may have positions in the companies mentioned. The Motley Fool recommends Insulet. The Motley Fool has a disclosure policy.Source