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Tandem Diabetes (TNDM) Gains From Innovation Amid Macro Issues
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Tandem Diabetes (TNDM - Free Report) is 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) currently.
Tandem Diabetes is undergoing a transition, which will position it 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 the 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 the 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.
In addition, the new diabetes management platform, Tandem Source, is now available for all Tandem pump users and their healthcare providers in the United States, with international availability expected in 2024. The company has a strong offering with its number-one rated AID system, t:slim X2 and with Control-IQ technology. In the four-year period ended Dec 31, 2023, approximately 450,000 insulin pumps were shipped, including 140,000 shipped to customers outside the United States.
Tandem Diabetes seeks to grow its business through the acquisitions of products or technologies and investments in businesses. The company started off 2023 with the acquisition of Switzerland-based privately-held AMF Medical SA — the developer of the Sigi Patch Pump. Tandem Diabetes also collaborated with its CGM partners, Dexcom and Abbott, on the integration of their sensors. The new Tandem Source brings together the features of the company’s legacy t:connect, t:connect HCP and t:connect Portal offerings with new comprehensive data reporting in one central, scalable platform.
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 by 498 basis points, while adjusted operating loss was 97.5% wider than the year-ago period.
Meanwhile, 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 the company’s 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 up from $8.97 to $9.23 in the past 30 days. Shares of the company have surged 69% in the past year compared with the industry’s 23.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Cardinal Health’s stock has surged 45.8% in the past year. Earnings estimates for Cardinal Health have risen from $7.28 to $7.29 for fiscal 2024 and from $8.03 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 16.7%.
Estimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 24.4% upward in the past year compared with the industry’s rise of 5.8%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.
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Tandem Diabetes (TNDM) Gains From Innovation Amid Macro Issues
Tandem Diabetes (TNDM - Free Report) is 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) currently.
Tandem Diabetes is undergoing a transition, which will position it 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 the 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 the 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.
In addition, the new diabetes management platform, Tandem Source, is now available for all Tandem pump users and their healthcare providers in the United States, with international availability expected in 2024. The company has a strong offering with its number-one rated AID system, t:slim X2 and with Control-IQ technology. In the four-year period ended Dec 31, 2023, approximately 450,000 insulin pumps were shipped, including 140,000 shipped to customers outside the United States.
Tandem Diabetes Care, Inc. Price
Tandem Diabetes Care, Inc. price | Tandem Diabetes Care, Inc. Quote
Tandem Diabetes seeks to grow its business through the acquisitions of products or technologies and investments in businesses. The company started off 2023 with the acquisition of Switzerland-based privately-held AMF Medical SA — the developer of the Sigi Patch Pump. Tandem Diabetes also collaborated with its CGM partners, Dexcom and Abbott, on the integration of their sensors. The new Tandem Source brings together the features of the company’s legacy t:connect, t:connect HCP and t:connect Portal offerings with new comprehensive data reporting in one central, scalable platform.
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 by 498 basis points, while adjusted operating loss was 97.5% wider than the year-ago period.
Meanwhile, 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 the company’s 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 sports a Zacks Rank #1 (Strong Buy) at present, Cardinal Health and Stryker 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 up from $8.97 to $9.23 in the past 30 days. Shares of the company have surged 69% in the past year compared with the industry’s 23.4% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an earnings surprise of 22.2%.
Cardinal Health’s stock has surged 45.8% in the past year. Earnings estimates for Cardinal Health have risen from $7.28 to $7.29 for fiscal 2024 and from $8.03 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 16.7%.
Estimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 24.4% upward in the past year compared with the industry’s rise of 5.8%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.