A month has gone by since the last earnings report for Tandem Diabetes (TNDM - Free Report) . Shares have added about 9.7% 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 due for a pullback? 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 catalysts.
Strong t:slim X2 Rollout Drives Revenues for Tandem in Q1
Tandem Diabetes reported loss per share of 40 cents in first-quarter 2019, significantly narrower than the year-ago net loss of $1.82. However, the same was wider than the Zacks Consensus Estimate of a loss of 28 cents.
Revenues in Detail
Revenues in the quarter totaled $65.9 million, surpassing the Zacks Consensus Estimate by 31%. The top line skyrocketed massively by141.4% from the year-earlier period banking on strong domestic demand for the t:slim X2 insulin pump.
Per management, the roll-out of t:slim X2 with Basal-IQ technology, increased supply capacity and renewal sales along with its international launch, strengthened the company’s core business and considerably, drove top-line growth in the first quarter.
In the first quarter, Tandem Diabetes’ pump shipments soared 232% year over year to 14,732 pumps. Of these, 5063 pumps were shipped to the international markets. Accordingly, Tandem Diabetes registered international sales of $11.3 million in the period.
Interestingly, the company had begun shipping pumps to select geographies for commencing its international operations last August.
Gross profit in the reported quarter came in at $33.4 million, significantly up 192.5% from the prior-year period. Gross margin came in at 50.5%, expanding 873 basis points (bps) on benefits from a number of factors.
Total operating expenses came in at $44.4 million compared with $26.9 million in the comparable quarter last year. Operating loss in the quarter under review was $10.9 million compared with the same of $15.5 million a year ago.
Tandem has updated its outlook for 2019. The company has raised its full-year total sales to a new range of $300-$315 million (indicating annual sales growth of around 63-71% from last year’s reported figure) from earlier-provided range of $255-$270 million. The Zacks Consensus Estimate for the top line is pegged at $264.3 million, below management’s projected range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
At this time, Tandem Diabetes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Tandem Diabetes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.