Tandem Diabetes Care, Inc.’s (TNDM - Free Report) reported GAAP net earnings per share (EPS) for the quarter was 16 cents, declining from the year-ago EPS of 22 cents. This figure missed the Zacks Consensus Estimate by 20%.
Full-year GAAP EPS was 24 cents, a significant improvement from the year-ago loss of 56 cents. This figure too missed the Zacks Consensus Estimate by 22.6%.
Revenues
Revenues in the quarter came in at $210 million, up 24.9% year over year and beating the Zacks Consensus Estimate by 6.1%. The strength in the top line was driven by robust pump shipments and growth in the company’s installed base, both in and outside the United States.
Full-year revenues were $702.8 million, reflecting a 40.9% uptick from the year-ago period. Again, the metric surpassed the Zacks Consensus Estimate by 1.7%.
Quarter in Detail
Tandem Diabetes registered international sales of $49.1 million in the quarter under review, recording a 70.9% rise from fourth-quarter 2020. Domestic sales totaled $160.9 million, up 15.5% year over year.
International pump shipments surged 45.9% to 11,873 pumps. Domestic pump shipments jumped 4.7% year over year to 25,712 units.
The company believes that the surge in pump shipments resulted from the continued adoption of the t:slim X2 technology. Further, domestic pump shipments benefitted from the traditional seasonal spike given the timing of insurance deductible resets and the highest volume of renewals the company has delivered in a single quarter.
Margins
Gross profit in the fourth quarter was $113.7 million, marking 25.6% year-over-year growth. Gross margin was 54.2%, indicating an expansion of 28 basis points (bps).
Selling, general and administrative expenses rose 31.1% to $71.5 million in the quarter under review. Research and development expenses also increased 69.7% to $29.5 million.
Overall operating income was $12.7 million, down 31.7% from the year-ago quarter. Adjusted operating margin contracted 504 bps from the year-ago quarter to 6.1%.
Financial Position
Tandem Diabetes exited 2021 with cash and cash equivalents, and short-term investments of $623.8 million compared with $484.9 million recorded at the end of 2020.
2022 Guidance
Tandem Diabetes has issued its financial guidance for 2022.
For the year, sales are projected in the range of $845-$860 million, indicating annual sales growth of 20% to 22%. The Zacks Consensus Estimate for 2022 revenues is pegged at $814.36 million.
Full-year international sales are estimated in the range of $215-$220 million, which suggests annual sales growth of 21% to 24%.
Our Take
Tandem Diabetes delivered better-than-expected revenues for the fourth quarter of 2021. Robust domestic and international pump shipments buoy optimism. Continued adoption of the company’s t:slim X2 insulin pumps looks encouraging as well. Further, the expanded international launch of Control IQ technology instills investors’ confidence. Expansion of gross margin is an added advantage.
However, the company’s earnings missed the Zacks Consensus Estimate. Contraction of adjusted operating margin is discouraging as well.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are GlaxoSmithKline plc (GSK - Free Report) , McKesson Corporation (MCK - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (ADS), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%.
GlaxoSmithKline has an estimated long-term growth rate of 6.8%. GSK has gained 23.1% compared with the industry’s 15.8% growth in the past year.
McKesson reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 per share by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 48.4% versus the industry’s 6% growth in the past year.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%.
Molina Healthcare has a long-term earnings growth rate of 18.8%. MOH has gained 36.2% compared with the industry’s 37.1% increase over the past year.
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Tandem Diabetes Care, Inc.’s (TNDM - Free Report) reported GAAP net earnings per share (EPS) for the quarter was 16 cents, declining from the year-ago EPS of 22 cents. This figure missed the Zacks Consensus Estimate by 20%.
Full-year GAAP EPS was 24 cents, a significant improvement from the year-ago loss of 56 cents. This figure too missed the Zacks Consensus Estimate by 22.6%.
Revenues
Revenues in the quarter came in at $210 million, up 24.9% year over year and beating the Zacks Consensus Estimate by 6.1%. The strength in the top line was driven by robust pump shipments and growth in the company’s installed base, both in and outside the United States.
Full-year revenues were $702.8 million, reflecting a 40.9% uptick from the year-ago period. Again, the metric surpassed the Zacks Consensus Estimate by 1.7%.
Quarter in Detail
Tandem Diabetes registered international sales of $49.1 million in the quarter under review, recording a 70.9% rise from fourth-quarter 2020. Domestic sales totaled $160.9 million, up 15.5% year over year.
International pump shipments surged 45.9% to 11,873 pumps. Domestic pump shipments jumped 4.7% year over year to 25,712 units.
The company believes that the surge in pump shipments resulted from the continued adoption of the t:slim X2 technology. Further, domestic pump shipments benefitted from the traditional seasonal spike given the timing of insurance deductible resets and the highest volume of renewals the company has delivered in a single quarter.
Margins
Gross profit in the fourth quarter was $113.7 million, marking 25.6% year-over-year growth. Gross margin was 54.2%, indicating an expansion of 28 basis points (bps).
Selling, general and administrative expenses rose 31.1% to $71.5 million in the quarter under review. Research and development expenses also increased 69.7% to $29.5 million.
Overall operating income was $12.7 million, down 31.7% from the year-ago quarter. Adjusted operating margin contracted 504 bps from the year-ago quarter to 6.1%.
Financial Position
Tandem Diabetes exited 2021 with cash and cash equivalents, and short-term investments of $623.8 million compared with $484.9 million recorded at the end of 2020.
2022 Guidance
Tandem Diabetes has issued its financial guidance for 2022.
For the year, sales are projected in the range of $845-$860 million, indicating annual sales growth of 20% to 22%. The Zacks Consensus Estimate for 2022 revenues is pegged at $814.36 million.
Full-year international sales are estimated in the range of $215-$220 million, which suggests annual sales growth of 21% to 24%.
Our Take
Tandem Diabetes delivered better-than-expected revenues for the fourth quarter of 2021. Robust domestic and international pump shipments buoy optimism. Continued adoption of the company’s t:slim X2 insulin pumps looks encouraging as well. Further, the expanded international launch of Control IQ technology instills investors’ confidence. Expansion of gross margin is an added advantage.
However, the company’s earnings missed the Zacks Consensus Estimate. Contraction of adjusted operating margin is discouraging as well.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are GlaxoSmithKline plc (GSK - Free Report) , McKesson Corporation (MCK - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (ADS), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%.
GlaxoSmithKline has an estimated long-term growth rate of 6.8%. GSK has gained 23.1% compared with the industry’s 15.8% growth in the past year.
McKesson reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 per share by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 48.4% versus the industry’s 6% growth in the past year.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%.
Molina Healthcare has a long-term earnings growth rate of 18.8%. MOH has gained 36.2% compared with the industry’s 37.1% increase over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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