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Tandem Diabetes (TNDM) Q3 Earnings Miss, Sales View Cut
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Tandem Diabetes Care, Inc. (TNDM - Free Report) reported an adjusted loss per share of 27 cents for the third quarter of 2022 against adjusted earnings of 10 cents per share in the year-ago period. This figure also compared unfavorably with the Zacks Consensus Estimate of a loss of 3 cents per share.
On a GAAP basis, the loss was 76 cents per share in the third quarter against earnings of 9 cents a year ago.
Revenues
Revenues in the quarter came in at $204.5 million, up 13.9% year over year but missed the Zacks Consensus Estimate by 0.7%. The year-over-year growth was driven by continued strong retention of the company’s worldwide installed base, which is 35% higher than 2021.
Quarter in Detail
Total sales in the United States came in at $146 million in the quarter under review, up 10% year over year. In September 2022, the company deferred $0.6 million of United States pump sales as a result of Tandem Choice.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
The company registered sales of $58.5 million outside the United States, recording a 26% rise from third-quarter 2021.
Tandem shipped approximately 12,000 pumps in the quarter. Its estimated installed base outside the United States has now surpassed 120,000 people.
Margins
Gross profit in the third quarter was $104.4 million, marking 7.9% year-over-year growth. The gross margin was 51.1%, reflecting a contraction of 281 basis points (bps).
Selling, general and administrative expenses rose 29.5% to $84.1 million in the quarter under review. Research and development expenses also increased 52.8% to $36.8 million.
The company registered an operating loss of $16.5 million in the third quarter, a huge slash from the year-ago operating profit of $7.7 million.
Financial Position
Tandem Diabetes exited the third quarter of 2022 with cash and cash equivalents, and short-term investments of $608.7 million compared with $635.3 million recorded at the end of the second quarter.
2022 Guidance
Tandem Diabetes has reduced its sales guidance for 2022.
For the year, sales are projected in the range of $800-$805 million (down from the prior projection of $835-$845 million), indicating annual sales growth of 14% to 15% (19% to 20% earlier). The Zacks Consensus Estimate for 2022 revenues is pegged at $815.9 million.
Full-year sales guidance for the United States is now projected in the range of $592-$595 million (down from $620-$625 million earlier).
Full-year sales guidance for outside the United States is now estimated in the band of $208-$210 million ($215-$220 million).
Our Take
Tandem Diabetes exited the third quarter with lower-than-expected top-and-bottom-line figures. Although the company delivered year-over-year sales growth, U.S. and outside-U.S. pump shipments in the quarter faced the unfavorable impact of difficult year-over-year comparisons. Further, escalating costs and expenses put pressure on margins.
Factoring the pandemic and competitive pressure as well as the evolving economic environment, including inflation and the threat of recession, the company slashed its full-year guidance.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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Tandem Diabetes (TNDM) Q3 Earnings Miss, Sales View Cut
Tandem Diabetes Care, Inc. (TNDM - Free Report) reported an adjusted loss per share of 27 cents for the third quarter of 2022 against adjusted earnings of 10 cents per share in the year-ago period. This figure also compared unfavorably with the Zacks Consensus Estimate of a loss of 3 cents per share.
On a GAAP basis, the loss was 76 cents per share in the third quarter against earnings of 9 cents a year ago.
Revenues
Revenues in the quarter came in at $204.5 million, up 13.9% year over year but missed the Zacks Consensus Estimate by 0.7%. The year-over-year growth was driven by continued strong retention of the company’s worldwide installed base, which is 35% higher than 2021.
Quarter in Detail
Total sales in the United States came in at $146 million in the quarter under review, up 10% year over year. In September 2022, the company deferred $0.6 million of United States pump sales as a result of Tandem Choice.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote
The company registered sales of $58.5 million outside the United States, recording a 26% rise from third-quarter 2021.
Tandem shipped approximately 12,000 pumps in the quarter. Its estimated installed base outside the United States has now surpassed 120,000 people.
Margins
Gross profit in the third quarter was $104.4 million, marking 7.9% year-over-year growth. The gross margin was 51.1%, reflecting a contraction of 281 basis points (bps).
Selling, general and administrative expenses rose 29.5% to $84.1 million in the quarter under review. Research and development expenses also increased 52.8% to $36.8 million.
The company registered an operating loss of $16.5 million in the third quarter, a huge slash from the year-ago operating profit of $7.7 million.
Financial Position
Tandem Diabetes exited the third quarter of 2022 with cash and cash equivalents, and short-term investments of $608.7 million compared with $635.3 million recorded at the end of the second quarter.
2022 Guidance
Tandem Diabetes has reduced its sales guidance for 2022.
For the year, sales are projected in the range of $800-$805 million (down from the prior projection of $835-$845 million), indicating annual sales growth of 14% to 15% (19% to 20% earlier). The Zacks Consensus Estimate for 2022 revenues is pegged at $815.9 million.
Full-year sales guidance for the United States is now projected in the range of $592-$595 million (down from $620-$625 million earlier).
Full-year sales guidance for outside the United States is now estimated in the band of $208-$210 million ($215-$220 million).
Our Take
Tandem Diabetes exited the third quarter with lower-than-expected top-and-bottom-line figures. Although the company delivered year-over-year sales growth, U.S. and outside-U.S. pump shipments in the quarter faced the unfavorable impact of difficult year-over-year comparisons. Further, escalating costs and expenses put pressure on margins.
Factoring the pandemic and competitive pressure as well as the evolving economic environment, including inflation and the threat of recession, the company slashed its full-year guidance.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.