We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tandem Diabetes (TNDM) Posts Narrower Q1 Loss, Raises '24 View
Read MoreHide Full Article
Tandem Diabetes Care, Inc. (TNDM - Free Report) reported a loss of 63 cents per share in the first quarter of 2024, in line with the year-ago period’s figure. The figure was narrower than the Zacks Consensus Estimate of a loss of 80 cents per share.
On a GAAP basis, the loss was 65 cents per share in the first quarter compared with the year-ago period’s loss of $1.92.
Revenues
GAAP revenues in the quarter came in at $191.7 million, up 13.2% year over year and topped the Zacks Consensus Estimate by 10.8%.
From September 2022 through February 2024, the company offered the Tandem Choice Program to eligible t:slim X2 customers to provide a pathway to the ownership of its newest hardware platform, Tandem Mobi, when available. Based on that, Tandem Diabetes is now reporting adjusted revenues as well.
Non-GAAP revenues were $192.8 million in the reported quarter on 25,000 pump shipments worldwide.
Quarter in Detail
Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.
The United States
Total sales in this region came in at $129.8 million in the first quarter on a GAAP basis, down 1.1% year over year. Non-GAAP sales in the United States were $130.9 million. The company shipped 15,000 pumps in the first quarter, lower than 17,000 shipments in the year-ago period.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
In the first quarter, the company registered GAAP sales of $61.9 million (same on a non-GAAP basis), compared to $38.1 million in the last year’s comparable period.
Margin Details
The gross profit in the first quarter was $94.7 million, a 14.2% improvement year over year. The gross margin expanded 45 basis points (bps) to 49.4% despite a 12.2% rise in the cost of sales.
SG&A expenses increased 0.3% to $90.1 million in the quarter under review. R&D expenses rose 9.7% to $46.2 million.
The company registered an adjusted operating loss of $41.7 million in the first quarter compared with the year-ago operating loss of $49.1 million.
Financial Position
Tandem Diabetes exited the first quarter of 2024 with cash, cash equivalents and short-term investments of $467.8 million compared with $467.9 million at the end of 2023.
2024 Guidance
Tandem Diabetes updated its financial outlook for 2024.
For the full year, non-GAAP sales are estimated to be approximately $868 million (earlier $850 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $849 million.
Non-GAAP sales inside the United States are expected to be nearly $634 million (previously $625 million) and sales outside the United States to be nearly $234 million (earlier $225 million).
For the second quarter of 2024, the company anticipates generating non-GAAP sales of approximately $205 million. Within this, sales inside the United States are expected to be nearly $150 million and $55 million outside the United States. The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $208.1 million.
Our Take
Tandem Diabetes exited the first quarter of 2024 with a lower-than-expected loss and surpassed revenue estimates. The strong performance was fueled by robust demand for both t:slim X2 and the newly launched Tandem Mobi, enabling to company to address a greater market of people living with diabetes. The expansion of the gross margin amid rising costs is encouraging.
Also, the revised outlook for the full year bodes well for the stock. Tandem Diabetes made some key commercial milestones with the successful launch of multiple new products worldwide during the quarter. The company showcased a competitive edge in the speed to market with CGM integrations, along with innovation leadership in algorithms.
Meanwhile, the decline in sales outside the United States is concerning.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , TransMedics Group (TMDX - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
TransMedics Group, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 EPS of 35 cents compared to the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $96.9 million outpaced the Zacks Consensus Estimate by 16.2%.
TMDX has an estimated 2024 earnings growth rate of 81.8% compared to the industry’s 14.4%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 290.8%.
Encompass Health, carrying a Zacks Rank #2, reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Tandem Diabetes (TNDM) Posts Narrower Q1 Loss, Raises '24 View
Tandem Diabetes Care, Inc. (TNDM - Free Report) reported a loss of 63 cents per share in the first quarter of 2024, in line with the year-ago period’s figure. The figure was narrower than the Zacks Consensus Estimate of a loss of 80 cents per share.
On a GAAP basis, the loss was 65 cents per share in the first quarter compared with the year-ago period’s loss of $1.92.
Revenues
GAAP revenues in the quarter came in at $191.7 million, up 13.2% year over year and topped the Zacks Consensus Estimate by 10.8%.
From September 2022 through February 2024, the company offered the Tandem Choice Program to eligible t:slim X2 customers to provide a pathway to the ownership of its newest hardware platform, Tandem Mobi, when available. Based on that, Tandem Diabetes is now reporting adjusted revenues as well.
Non-GAAP revenues were $192.8 million in the reported quarter on 25,000 pump shipments worldwide.
Quarter in Detail
Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.
The United States
Total sales in this region came in at $129.8 million in the first quarter on a GAAP basis, down 1.1% year over year. Non-GAAP sales in the United States were $130.9 million. The company shipped 15,000 pumps in the first quarter, lower than 17,000 shipments in the year-ago period.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote
Outside the United States
In the first quarter, the company registered GAAP sales of $61.9 million (same on a non-GAAP basis), compared to $38.1 million in the last year’s comparable period.
Margin Details
The gross profit in the first quarter was $94.7 million, a 14.2% improvement year over year. The gross margin expanded 45 basis points (bps) to 49.4% despite a 12.2% rise in the cost of sales.
SG&A expenses increased 0.3% to $90.1 million in the quarter under review. R&D expenses rose 9.7% to $46.2 million.
The company registered an adjusted operating loss of $41.7 million in the first quarter compared with the year-ago operating loss of $49.1 million.
Financial Position
Tandem Diabetes exited the first quarter of 2024 with cash, cash equivalents and short-term investments of $467.8 million compared with $467.9 million at the end of 2023.
2024 Guidance
Tandem Diabetes updated its financial outlook for 2024.
For the full year, non-GAAP sales are estimated to be approximately $868 million (earlier $850 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $849 million.
Non-GAAP sales inside the United States are expected to be nearly $634 million (previously $625 million) and sales outside the United States to be nearly $234 million (earlier $225 million).
For the second quarter of 2024, the company anticipates generating non-GAAP sales of approximately $205 million. Within this, sales inside the United States are expected to be nearly $150 million and $55 million outside the United States. The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $208.1 million.
Our Take
Tandem Diabetes exited the first quarter of 2024 with a lower-than-expected loss and surpassed revenue estimates. The strong performance was fueled by robust demand for both t:slim X2 and the newly launched Tandem Mobi, enabling to company to address a greater market of people living with diabetes. The expansion of the gross margin amid rising costs is encouraging.
Also, the revised outlook for the full year bodes well for the stock. Tandem Diabetes made some key commercial milestones with the successful launch of multiple new products worldwide during the quarter. The company showcased a competitive edge in the speed to market with CGM integrations, along with innovation leadership in algorithms.
Meanwhile, the decline in sales outside the United States is concerning.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , TransMedics Group (TMDX - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
TransMedics Group, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 EPS of 35 cents compared to the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $96.9 million outpaced the Zacks Consensus Estimate by 16.2%.
TMDX has an estimated 2024 earnings growth rate of 81.8% compared to the industry’s 14.4%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 290.8%.
Encompass Health, carrying a Zacks Rank #2, reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.