Tandem Diabetes Care, Inc.’s ( TNDM Quick Quote TNDM - Free Report) adjusted earnings per share (“EPS”) of 24 cents for fourth-quarter 2020 registered a stupendous 500% surge from the year-ago reported EPS of 4 cents. Further, the quarter's adjusted EPS exceeded the Zacks Consensus Estimate by 84.6%.
GAAP EPS came in at 22 cents per share, up by 450% from the year-ago figure.
Full-year GAAP loss per share was 56 cents, wider than the year-ago loss of 42 cents per share.
Revenues in the quarter came in at $168.1 million, beating the Zacks Consensus Estimate by 19.1%. The top line surged 55% year over year despite sales pressure due to COVID-19. Robust adoption of the company’s Control-IQ technology significantly boosted the top line in the reported quarter.
Full-year revenues were $498.8 million, reflecting a 37.7% uptick from the year-ago period. Again, the metric surpassed the Zacks Consensus Estimate by 5.7%.
Q4 in Detail
Tandem Diabetes registered international sales of $28.7 million in the quarter under review, recording a 182% uptick from fourth-quarter 2019. Domestic sales came in at $139.3 million, up 42% year on year.
International pump shipments surged 278% to 8,133 pumps. Domestic pump shipments jumped 41% year over year to 24,552 units.
The company believes that surge in pump shipments resulted from the continued momentum of its Control-IQ technology.
Gross profit in the December-end quarter was $90.6 million, marking a 50.2% year-over-year growth. Gross margin was, however, 53.9%, indicating a contraction of 172 basis points (bps).
Selling, general and administrative expenses rose 19.7% to $54.5 million in the quarter under review. Research and development expenses also rose 38.3% to $17.4 million.
Overall operating profit was $18.7 million, up 770.4% year over year. Operating margin expanded 913 bps year over year to 11.1%.
Tandem Diabetes exited 2020 with cash and cash equivalents, and short-term investments of $484.9 million compared with $176.5 million recorded at the end of 2019.
Based on the strength in demand for t:slim X2 insulin pump across the globe, Tandem Diabetes has issued its financial guidance for the year 2021.
For the year, sales are estimated to be in the range of $600-$615 million, representing annual sales growth of 20-23% compared with 2020. The Zacks Consensus Estimate for 2021 revenues is pegged at $564.3 million.
The full-year sales outlook includes international sales of $105-$110 million.
Tandem Diabetes delivered better-than-expected results in the fourth quarter of 2020. A robust top line despite pandemic-led business disruptions is impressive. Strong domestic and international pump sales, along with robust domestic and international pump shipments, buoy optimism. Continued strength in demand for t:slim X2 insulin pump across the globe, and rising customer adoption of the company’s Control-IQ technology, look encouraging. A robust product pipeline is also impressive. The company’s full-year sales forecast also looks upbeat amid the coronavirus crisis. Expansion of operating margin bodes well for the stock.
However, the unabated spread of the pandemic continues to pose challenges to the company’s operations, raising apprehensions.
Zacks Rank & Other Key Picks
Currently, Tandem Diabetes carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are
Abbott Laboratories ( ABT Quick Quote ABT - Free Report) , Hologic, Inc. ( HOLX Quick Quote HOLX - Free Report) and IDEXX Laboratories, Inc. ( IDXX Quick Quote IDXX - Free Report) .
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%. The company currently carries a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, beating the Zacks Consensus Estimate by 33.6%. The company currently carries a Zacks Rank #2.
IDEXX reported fourth-quarter 2020 adjusted EPS of $2.01 which surpassed the Zacks Consensus Estimate by 40.6%. Revenues of $720.9 million beat the consensus mark by 5.8%. The company currently carries a Zacks Rank #2.
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