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Why Is Tandem Diabetes Care, Inc. (TNDM) Up 33.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Tandem Diabetes Care, Inc. (TNDM - Free Report) . Shares have added about 33.2% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Tandem Diabetes Reports Wider Q3 Loss, Lowers '23 Sales View
Tandem Diabetes Care, Inc. reported an adjusted loss of 38 cents per share for the third quarter of 2023, wider than the adjusted loss of 27 cents per share in the year-ago period. The figure also missed the Zacks Consensus Estimate of a loss of 35 cents.
On a GAAP basis, the loss was 51 cents per share in the third quarter compared with the year-ago period’s loss of 76 cents.
Revenues
GAAP revenues in the quarter came in at $185.6 million, down 9.3% year over year and missed the Zacks Consensus Estimate by 4%.
In September 2022, the company began offering 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 $193.9 million in the reported quarter on 24,831 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 $130.2 million in the third quarter on a GAAP basis, down 10.8% year over year. Non-GAAP sales in the United States were $138.5 million. The company shipped 16.842 pumps in the third quarter, down 17.4% from the year-ago period.
Outside the United States
In the third quarter, the company registered GAAP sales of $55.4 million (same on a non-GAAP basis), a 5.3% decline from the year-ago period.
Margin Details
The gross profit in the third quarter was $89.8 million, a 14.1% decline year over year. The gross margin was 48.4%, reflecting a contraction of 270 basis points (bps).
SG&A expenses fell 5.7% to $79.3 million in the quarter under review. R&D expenses increased 14.1% to $42 million.
The company registered an adjusted operating loss of $31.6 million in the third quarter compared with the year-ago operating loss of $16.5 million.
Financial Position
Tandem Diabetes exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $498.2 million compared with $507.2 million at the end of the second quarter.
2023 Guidance
Tandem Diabetes provided updated sales guidance for 2023.
For the full year, non-GAAP sales are estimated to be at least $765 million (earlier $785 million). The Zacks Consensus Estimate for full-year 2023 revenues is pegged at $787.5 million.
Full-year non-GAAP sales inside the United States are expected to be at least $575 million (unchanged) and non-GAAP sales outside the United States to be at least $190 million (down from the previous outlook of at least $210 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -27.89% due to these changes.
VGM Scores
Currently, Tandem Diabetes Care, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tandem Diabetes Care, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tandem Diabetes Care, Inc. belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integer (ITGR - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Integer reported revenues of $404.69 million in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $1.27 for the same period compares with $0.95 a year ago.
Integer is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +19.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
Integer has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Tandem Diabetes Care, Inc. (TNDM) Up 33.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Tandem Diabetes Care, Inc. (TNDM - Free Report) . Shares have added about 33.2% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Tandem Diabetes Reports Wider Q3 Loss, Lowers '23 Sales View
Tandem Diabetes Care, Inc. reported an adjusted loss of 38 cents per share for the third quarter of 2023, wider than the adjusted loss of 27 cents per share in the year-ago period. The figure also missed the Zacks Consensus Estimate of a loss of 35 cents.
On a GAAP basis, the loss was 51 cents per share in the third quarter compared with the year-ago period’s loss of 76 cents.
Revenues
GAAP revenues in the quarter came in at $185.6 million, down 9.3% year over year and missed the Zacks Consensus Estimate by 4%.
In September 2022, the company began offering 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 $193.9 million in the reported quarter on 24,831 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 $130.2 million in the third quarter on a GAAP basis, down 10.8% year over year. Non-GAAP sales in the United States were $138.5 million. The company shipped 16.842 pumps in the third quarter, down 17.4% from the year-ago period.
Outside the United States
In the third quarter, the company registered GAAP sales of $55.4 million (same on a non-GAAP basis), a 5.3% decline from the year-ago period.
Margin Details
The gross profit in the third quarter was $89.8 million, a 14.1% decline year over year. The gross margin was 48.4%, reflecting a contraction of 270 basis points (bps).
SG&A expenses fell 5.7% to $79.3 million in the quarter under review. R&D expenses increased 14.1% to $42 million.
The company registered an adjusted operating loss of $31.6 million in the third quarter compared with the year-ago operating loss of $16.5 million.
Financial Position
Tandem Diabetes exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $498.2 million compared with $507.2 million at the end of the second quarter.
2023 Guidance
Tandem Diabetes provided updated sales guidance for 2023.
For the full year, non-GAAP sales are estimated to be at least $765 million (earlier $785 million). The Zacks Consensus Estimate for full-year 2023 revenues is pegged at $787.5 million.
Full-year non-GAAP sales inside the United States are expected to be at least $575 million (unchanged) and non-GAAP sales outside the United States to be at least $190 million (down from the previous outlook of at least $210 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -27.89% due to these changes.
VGM Scores
Currently, Tandem Diabetes Care, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tandem Diabetes Care, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tandem Diabetes Care, Inc. belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integer (ITGR - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Integer reported revenues of $404.69 million in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $1.27 for the same period compares with $0.95 a year ago.
Integer is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +19.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
Integer has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.