It has been about a month since the last earnings report for Tandem Diabetes Care, Inc. (TNDM Quick QuoteTNDM - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Tandem Diabetes Care, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Tandem Diabetes Q2 Earnings Improve Y/Y, 2021 Guidance Up

Tandem Diabetes Care reported GAAP net earnings per share for the quarter was 6 cents, a significant improvement from the year-ago net loss of 45 cents. The Zacks Consensus Estimate is pegged at a loss of 8 cents.

Revenues

Revenues in the quarter came in at $172.1 million, up 57.6% year over year and beating the Zacks Consensus Estimate by 19%. The strength in the top line was driven by new customer demand and increasing renewal purchases from the company’s installed base.

The company registered record-high sales in the second quarter by expanding and further penetrating in the U.S. insulin pump market. Rapid international uptake of Tandem Diabetes’ technologies in regions where business opportunities are still in early stages also contributed to top-line growth.

Quarter in Detail

Tandem Diabetes registered international sales of $44.6 million in the quarter under review, recording a 123% rise from second-quarter 2020. Domestic sales totaled $127.6 million, up 43% year over year.

International pump shipments surged 233% to 13,152 pumps. Domestic pump shipments jumped 40% year over year to 20,665 units.

The company believes that surge in pump shipments resulted from continued adoption of t:slim X2 technology by both new and existing customers and more healthcare providers prescribing the t:slim X2 than ever before.

Margins

Gross profit in the second quarter was $92.5 million, marking 69.9% year-over-year growth. Gross margin was 53.7%, indicating an expansion of 392 basis points (bps).

Selling, general and administrative expenses rose 31.9% to $66.5 million in the quarter under review. Research and development expenses also increased 28.2% to $20.5 million.

Overall operating income was $5.4 million against the year-ago loss of $12 million.

Financial Position

Tandem Diabetes exited second-quarter 2021 with cash and cash equivalents, and short-term investments of $545.3 million compared with $513.4 million at the end of first-quarter 2021.

2021 Sales Guidance Raised

For 2021, the sales projection has been raised to $670-$685 million, indicating annual sales growth of 34% to 37% (earlier projection for 2021 was in the range of $625-$640 million). The Zacks Consensus Estimate for 2021 revenues is pegged at $634.71 million.

Full-year international sales are expected in the range of $160-$165 million, which suggests annual sales growth of 92% to 98%. This also represents a significant improvement from the prior guidance of $125-$130 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month. The consensus estimate has shifted 42.86% due to these changes.

VGM Scores

At this time, Tandem Diabetes Care, Inc. has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Tandem Diabetes Care, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.