Insulet Shares Jumped: What You Need to Know

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical device company Insulet (NAS: PODD) rose 14% today after the company released earnings.

So what: Revenue jumped 75% to $44.6 million, and loss per share dropped a penny to $0.29. Both results were worse than analysts were expecting, as was revenue guidance of $150 million to $154 million.

Now what: The losses keep mounting and for the full year. Insulet is expecting an operating loss of $39 million to $42 million. I just can't get excited about a company posting losses as far as the eye can see, no matter how fast revenue is growing. I'm going to stay away from this move today, and Insulet can wake me when it actually starts turning a profit.

Interested in more info on Insulet? Add it to yourwatchlist.

At the time thisarticle was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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