Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Insulet (NASDAQ:PODD) and its peers.
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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.9% below.
Luckily, patient monitoring stocks have performed well with share prices up 19.2% on average since the latest earnings results.
Best Q1: 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 $569 million, up 28.8% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ constant currency revenue and EPS estimates.
Insulet Total Revenue
Insulet pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 23.7% since reporting and currently trades at $318.02.
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 $158.7 million, up 20.3% year on year, outperforming analysts’ expectations by 3.3%. The business had a strong quarter with full-year revenue guidance beating analysts’ expectations.
iRhythm Total Revenue
iRhythm delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 32% since reporting. It currently trades at $143.83.
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 $372 million, up 9.5% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a mixed quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Masimo delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 1.5% since the results and currently trades at $163.09.
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 $1.29 billion, up 7.9% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced EPS and constant currency revenue in line with analysts’ estimates.
ResMed had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 16.6% since reporting and currently trades at $249.94.
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 $1.04 billion, up 12.5% year on year. This result beat analysts’ expectations by 1.8%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ organic revenue estimates but a miss of analysts’ EPS estimates.
The stock is up 22% since reporting and currently trades at $85.74.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
