Shares of Insulet (PODD) suffered the heaviest losses of any S&P 500 stock on Friday, dropping 8.8% after the maker of insulin m🍸anagement devices suggested new user growth could be lower than previously expected in the second half of 2024, despite topping second-quarter sales estimates.

Insulet reported diluted earnings of $2.59 per share on revenue of $488.5 million, growing from the year-ago period and exceeding analysts' estimates compiled by Visible Alpha. Revenue gains were boosted by a 26.3% year-over-year jump in sales of the company's Omnipod device.

However, adjusted earnings per share of 55 cents slightly missed expectations as🍬 the company recognized the impact of a $13.5 million charge during the quarter related to inventory it anticipates will remain underutilized.

User Growth Could Be Lower Than Anticipated

The company said it still anticipates users will grow in the second half of the year, though it suggested the pace of growth could be lower than previously anticipated, driven by a reduced numbers of patients switching from competing devices.

Inꦕ a notꦰe released following the earnings report, Baird analysts said they heard concerns from investors about user growth, particularly in the U.S., but said Insulet could be poised to generate additional quarter-over-quarter improvements in global new patient starts this year.

Baird maintained an "outperform" rating and $238 price target for Insulet stock, highlighting the company's increasing margin strength and potential for global sales growth.

The company raised its guidance for full-year re📖venue growth to between 16% and 19%, up 😼from a previous range of 14% to 18%.

With Thursday's losses, Insulet shares have fallen about 16% since the start of the year.