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Tandem Diabetes Care (TNDM) Down 9.2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Tandem Diabetes Care, Inc. (TNDM - Free Report) . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tandem Diabetes Care due for a breakout? 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 drivers.
TNDM Q3 Earnings Beat, '24 Sales View Up
Tandem Diabetes posted a third-quarter 2024 loss of 36 cents per share compared with the year-ago quarter’s reported loss of 38 cents. The figure beat the Zacks Consensus Estimate of a loss of 43 cents per share.
On a GAAP basis, the loss was 35 cents per share compared with the year-ago loss of 51 cents.
Q3 Revenues
GAAP revenues in the quarter totaled $244 million, up 31.5% year over year. The figure topped the Zacks Consensus Estimate by 9.2%.
Non-GAAP revenues amounted to $242.9 million, up 25.3% year over year.
From September 2022 through February 2024, the company offered 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.
Quarterly Performance 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 were $171.7 million on a GAAP basis, up 31.9% year over year. Non-GAAP sales in the United States totaled $170.6 million. The company shipped approximately 21,000 pumps in the third quarter.
Outside the United States
In the third quarter, the company registered GAAP sales of $72.3 million (same on a non-GAAP basis) compared with $53.4 million in the prior-year period.
Margins
The gross profit in the reported quarter was $124.6 million, up 38.9% year over year. The gross margin expanded 274 basis points (bps) to 51.1% despite a 24.5% rise in the cost of sales.
SG&A expenses rose 25.6% to $99.6 million. R&D expenses rose 21.9% to $51.1 million.
The company registered an adjusted operating loss of $26.1 million in the third quarter compared with a loss of $31.5 million in the year-ago period.
Financial Position
Tandem Diabetes exited the third quarter of 2024 with cash, cash equivalents and short-term investments of $473.3 million compared with $452.4 million at the end of the second quarter of 2024.
Updated 2024 Guidance
Tandem Diabetes raised its sales outlook for 2024.
For the full year, non-GAAP sales are now estimated to be in the range of $903-$910 million (earlier $885-$892 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $889.6 million.
Non-GAAP sales in the United States are expected to be in the band of $645-$650 million (previously $640-$645 million). Sales outside the United States are projected to be in the range of $258-$260 million (earlier $245-$247 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Tandem Diabetes Care has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Tandem Diabetes Care 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 belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Fresenius (FMS - Free Report) , has gained 13.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Fresenius reported revenues of $5.23 billion in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.45 for the same period compares with $0.31 a year ago.
For the current quarter, Fresenius is expected to post earnings of $0.41 per share, indicating a change of -12.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.8% over the last 30 days.
Fresenius has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Tandem Diabetes Care (TNDM) Down 9.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Tandem Diabetes Care, Inc. (TNDM - Free Report) . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tandem Diabetes Care due for a breakout? 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 drivers.
TNDM Q3 Earnings Beat, '24 Sales View Up
Tandem Diabetes posted a third-quarter 2024 loss of 36 cents per share compared with the year-ago quarter’s reported loss of 38 cents. The figure beat the Zacks Consensus Estimate of a loss of 43 cents per share.
On a GAAP basis, the loss was 35 cents per share compared with the year-ago loss of 51 cents.
Q3 Revenues
GAAP revenues in the quarter totaled $244 million, up 31.5% year over year. The figure topped the Zacks Consensus Estimate by 9.2%.
Non-GAAP revenues amounted to $242.9 million, up 25.3% year over year.
From September 2022 through February 2024, the company offered 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.
Quarterly Performance 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 were $171.7 million on a GAAP basis, up 31.9% year over year. Non-GAAP sales in the United States totaled $170.6 million. The company shipped approximately 21,000 pumps in the third quarter.
Outside the United States
In the third quarter, the company registered GAAP sales of $72.3 million (same on a non-GAAP basis) compared with $53.4 million in the prior-year period.
Margins
The gross profit in the reported quarter was $124.6 million, up 38.9% year over year. The gross margin expanded 274 basis points (bps) to 51.1% despite a 24.5% rise in the cost of sales.
SG&A expenses rose 25.6% to $99.6 million. R&D expenses rose 21.9% to $51.1 million.
The company registered an adjusted operating loss of $26.1 million in the third quarter compared with a loss of $31.5 million in the year-ago period.
Financial Position
Tandem Diabetes exited the third quarter of 2024 with cash, cash equivalents and short-term investments of $473.3 million compared with $452.4 million at the end of the second quarter of 2024.
Updated 2024 Guidance
Tandem Diabetes raised its sales outlook for 2024.
For the full year, non-GAAP sales are now estimated to be in the range of $903-$910 million (earlier $885-$892 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $889.6 million.
Non-GAAP sales in the United States are expected to be in the band of $645-$650 million (previously $640-$645 million). Sales outside the United States are projected to be in the range of $258-$260 million (earlier $245-$247 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Tandem Diabetes Care has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Tandem Diabetes Care 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 belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Fresenius (FMS - Free Report) , has gained 13.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Fresenius reported revenues of $5.23 billion in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.45 for the same period compares with $0.31 a year ago.
For the current quarter, Fresenius is expected to post earnings of $0.41 per share, indicating a change of -12.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.8% over the last 30 days.
Fresenius has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.