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Tandem Diabetes (TNDM) Gains From Innovation Amid Competition
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Tandem Diabetes (TNDM - Free Report) has been gaining from continued product innovations. A strong focus on expanding into global markets is a major positive. However, ongoing macroeconomic challenges pose concerns for Tandem Diabetes. The stock carries a Zacks Rank #3 (Hold).
In the near and long term, Tandem Diabetes aims to strategically expand the adoption of the insulin pump by people with type 1 diabetes across all its markets and produce evolved products and services to attract type 2 diabetes people who use insulin-intensive therapy. The launch of the t:slim X2 with the new continuous glucose monitor (CGM) integration has garnered a favorable response from the diabetes community for having a choice in their therapy management. In the Type 1 market, the company sees great opportunity as more than one million people in the United States are currently devoid of the benefits of insulin pump therapy and an even larger population in international markets.
Moreover, the company’s research indicates that more than two million people with type 2 diabetes in the United States are already insulin-dependent and do not use a pump. In 2024, the company intends to advance its automated insulin delivery (AID) algorithm and expand its indications to include people living with Type 2 diabetes.
Meanwhile, Tandem Diabetes is undergoing a transition phase, positioning itself for the next phase of growth through its innovative portfolio. Throughout 2023, the company launched new products to increase pump adoption and extend the benefits of the technology to more people living with diabetes. As Tandem Diabetes expands the pump market, it assumes that new customers for multiple daily injections will eventually begin to outpace growth and competitive conversions.
Tandem Diabetes is now the only pump company to offer users choice in CGM integration in the United States, having launched the t:slim X2 with DexCom’s G7. The company’s newest pump platform, Tandem Mobi, is leading the way in creating a whole new category of devices for insulin therapy. It is intended to be fully controlled through a mobile app on a personal smartphone, with t:connect being at the foundation of its mobile control functionality. As Mobi makes its debut in the market, Tandem Diabetes is ready to further scale the new technology with the currently available DexCom G6, followed by both DexCom G7 and the FreeStyle Libre 3 technology.
On the flip side, Tandem Diabetes continues to navigate global macroeconomic challenges, such as recessionary concerns, changes in discretionary spending and increased interest rates, which have impacted its customers’ purchasing decisions and the buying patterns of distributors. The impacts of these macroeconomic factors, along with high inflation, have led to the disruption of the company’s relationship with suppliers, third-party manufacturers, healthcare providers, distributors and overall customers. In the fourth quarter of 2023, the company’s gross margin fell 498 basis points, while adjusted operating loss was 97.5% wider than the year-ago period.
Tandem Diabetes operates in a highly competitive environment dominated by firms ranging from large multinational corporations with significant resources to start-ups. The company’s primary competitors are major medical device companies that are publicly traded or divisions or subsidiaries of publicly traded companies, including Insulet and Medtronic. Also, the competitive and regulatory conditions in the markets where the company operates limit its ability to switch to strategies like price increases.
In addition, several companies have been developing and marketing their own insulin delivery systems and related software applications, including insulin pumps and Bluetooth-enabled insulin pens, to support MDI therapy. These significant changes within the industry may affect the company’s business and operating results.
Estimates for DaVita’s 2024 earnings per share have moved from $8.86 to $8.97 in the past 30 days. Shares of the company have surged 81.1% in the past year compared with the industry’s 26.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.57%. In the last reported quarter, it delivered an average earnings surprise of 22.22%.
Cardinal Health’s stock has surged 63.1% in the past year. Earnings estimates for Cardinal Health have risen from $7.23 to $7.28 for fiscal 2024 and from $7.98 to $8.04 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.67%.
Estimates for Stryker’s 2024 earnings per share have increased from $11.84 to $11.86 in the past 30 days. Shares of the company have moved 28.9% upward in the past year compared with the industry’s rise of 7.1%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.09%. In the last reported quarter, it delivered an average earnings surprise of 5.81%.
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Tandem Diabetes (TNDM) Gains From Innovation Amid Competition
Tandem Diabetes (TNDM - Free Report) has been gaining from continued product innovations. A strong focus on expanding into global markets is a major positive. However, ongoing macroeconomic challenges pose concerns for Tandem Diabetes. The stock carries a Zacks Rank #3 (Hold).
In the near and long term, Tandem Diabetes aims to strategically expand the adoption of the insulin pump by people with type 1 diabetes across all its markets and produce evolved products and services to attract type 2 diabetes people who use insulin-intensive therapy. The launch of the t:slim X2 with the new continuous glucose monitor (CGM) integration has garnered a favorable response from the diabetes community for having a choice in their therapy management. In the Type 1 market, the company sees great opportunity as more than one million people in the United States are currently devoid of the benefits of insulin pump therapy and an even larger population in international markets.
Moreover, the company’s research indicates that more than two million people with type 2 diabetes in the United States are already insulin-dependent and do not use a pump. In 2024, the company intends to advance its automated insulin delivery (AID) algorithm and expand its indications to include people living with Type 2 diabetes.
Meanwhile, Tandem Diabetes is undergoing a transition phase, positioning itself for the next phase of growth through its innovative portfolio. Throughout 2023, the company launched new products to increase pump adoption and extend the benefits of the technology to more people living with diabetes. As Tandem Diabetes expands the pump market, it assumes that new customers for multiple daily injections will eventually begin to outpace growth and competitive conversions.
Tandem Diabetes Care, Inc. Price
Tandem Diabetes Care, Inc. price | Tandem Diabetes Care, Inc. Quote
Tandem Diabetes is now the only pump company to offer users choice in CGM integration in the United States, having launched the t:slim X2 with DexCom’s G7. The company’s newest pump platform, Tandem Mobi, is leading the way in creating a whole new category of devices for insulin therapy. It is intended to be fully controlled through a mobile app on a personal smartphone, with t:connect being at the foundation of its mobile control functionality. As Mobi makes its debut in the market, Tandem Diabetes is ready to further scale the new technology with the currently available DexCom G6, followed by both DexCom G7 and the FreeStyle Libre 3 technology.
On the flip side, Tandem Diabetes continues to navigate global macroeconomic challenges, such as recessionary concerns, changes in discretionary spending and increased interest rates, which have impacted its customers’ purchasing decisions and the buying patterns of distributors. The impacts of these macroeconomic factors, along with high inflation, have led to the disruption of the company’s relationship with suppliers, third-party manufacturers, healthcare providers, distributors and overall customers. In the fourth quarter of 2023, the company’s gross margin fell 498 basis points, while adjusted operating loss was 97.5% wider than the year-ago period.
Tandem Diabetes operates in a highly competitive environment dominated by firms ranging from large multinational corporations with significant resources to start-ups. The company’s primary competitors are major medical device companies that are publicly traded or divisions or subsidiaries of publicly traded companies, including Insulet and Medtronic. Also, the competitive and regulatory conditions in the markets where the company operates limit its ability to switch to strategies like price increases.
In addition, several companies have been developing and marketing their own insulin delivery systems and related software applications, including insulin pumps and Bluetooth-enabled insulin pens, to support MDI therapy. These significant changes within the industry may affect the company’s business and operating results.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita (DVA - Free Report) , Cardinal Health (CAH - Free Report) and Stryker (SYK - Free Report) . While DaVita presently sports a Zacks Rank #1 (Strong Buy), Stryker and Cardinal Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for DaVita’s 2024 earnings per share have moved from $8.86 to $8.97 in the past 30 days. Shares of the company have surged 81.1% in the past year compared with the industry’s 26.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.57%. In the last reported quarter, it delivered an average earnings surprise of 22.22%.
Cardinal Health’s stock has surged 63.1% in the past year. Earnings estimates for Cardinal Health have risen from $7.23 to $7.28 for fiscal 2024 and from $7.98 to $8.04 for fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.67%.
Estimates for Stryker’s 2024 earnings per share have increased from $11.84 to $11.86 in the past 30 days. Shares of the company have moved 28.9% upward in the past year compared with the industry’s rise of 7.1%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.09%. In the last reported quarter, it delivered an average earnings surprise of 5.81%.