Let’s dig into the relative performance of Insulet (NASDAQ: PODD) and its peers as we unravel the now-completed Q4 patient monitoring earnings season.
Patient monitoring companies within the healthcare equipment industry offer devices and technologies that track chronic conditions and support real-time health management, such as continuous glucose monitors (CGMs) and sleep apnea machines. These businesses benefit from recurring revenue from consumables and software subscriptions tied to device sales (razor, razor blade model). The rising prevalence of chronic diseases like diabetes and respiratory disorders due to an aging population as well as growing adoption of digitization are good for the industry. However, these companies face challenges from high R&D costs and reliance on regulatory approvals. Looking ahead, the sector is positioned for growth due to tailwinds like the rising burden of chronic diseases from an aging population, the shift toward value-based care, and increased adoption of digital health solutions. Innovations in AI and machine learning are expected to enhance device accuracy and functionality, improving patient outcomes and driving demand. However, there are headwinds such as pricing pressures as healthcare costs are a key focus, especially in the US. An evolving regulatory landscape and competition from more tech-forward new entrants could present additional challenges.
The 5 patient monitoring stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.3% since the latest earnings results.
Insulet (NASDAQ: PODD)
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Insulet reported revenues of $597.5 million, up 17.2% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ constant currency revenue and EPS estimates.
"We concluded an incredible year with a very strong fourth quarter, achieving significant milestones across the business, and exceeding our growth and margin objectives," said Jim Hollingshead, Insulet President and Chief Executive Officer.
The stock is down 8.2% since reporting and currently trades at $264.60.
We think Insulet is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q4: Masimo (NASDAQ: MASI)
Founded in 1989 to solve the "unsolvable problem" of accurate pulse oximetry during patient movement, Masimo (NASDAQ: MASI) develops and manufactures noninvasive patient monitoring technologies, including its breakthrough pulse oximetry systems that accurately measure blood oxygen levels even during patient movement.
Masimo reported revenues of $600.7 million, up 9.4% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and full-year operating income guidance exceeding analysts’ expectations.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $168.90.
Is now the time to buy Masimo? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: DexCom (NASDAQ: DXCM)
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
DexCom reported revenues of $1.11 billion, up 7.6% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
DexCom delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 11.4% since the results and currently trades at $74.51.
Read our full analysis of DexCom’s results here.
iRhythm (NASDAQ: IRTC)
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
iRhythm reported revenues of $164.3 million, up 24% year on year. This print surpassed analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EPS estimates.
iRhythm achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 7.5% since reporting and currently trades at $104.
Read our full, actionable report on iRhythm here, it’s free.
ResMed (NYSE: RMD)
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
ResMed reported revenues of $1.28 billion, up 10.3% year on year. This result topped analysts’ expectations by 1%. It was a strong quarter as it also produced a narrow beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 14.2% since reporting and currently trades at $221.09.
Read our full, actionable report on ResMed here, it’s free.
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