It has been about a month since the last earnings report for Tandem Diabetes Care, Inc. (TNDM Quick QuoteTNDM - Free Report) . Shares have lost about 3.7% 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, Inc. 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 catalysts.

Tandem Diabetes Q3 Earnings Top Estimates, Sales View Up

Tandem Diabetes reported GAAP net earnings per share of 10 cents for the quarter against the year-ago net loss of 9 cents. The metric exceeded the Zacks Consensus Estimate by 25%.

Revenues

Revenues in the quarter came in at $179.6 million, up 45.3% year over year and beat the Zacks Consensus Estimate by 3.5%. The strength in the top line was driven by new customer demand and increasing renewal purchases from the company’s installed base.

Quarter in Detail

Tandem Diabetes registered international sales of $46.5 million in the quarter under review, recording a 189% rise from third-quarter 2020. Domestic sales totaled $133.1 million, up 24% year over year.

International pump shipments surged 209% to 11,262 units. Domestic pump shipments jumped 10% year over year to 20,296 units.

The company believes that the surge in pump shipments resulted from continued adoption of t:slim X2 technology by both new and existing customers and more healthcare providers prescribing the t:slim X2 than ever before.

Margins

Gross profit in the third quarter was $96.7 million, marking 48.1% year-over-year growth. Gross margin was 53.9%, indicating an expansion of 102 basis points (bps).

Selling, general and administrative expenses rose 29.3% to $64.9 million in the quarter under review. Research and development expenses also increased 49.8% to $24.1 million.

Overall operating income was $7.7 million against the year-ago loss of $1 million.

Financial Position

Tandem Diabetes exited third-quarter 2021 with cash and cash equivalents, and short-term investments of $595 million compared with $545.3 million at the end of second-quarter 2021.

2021 Sales Guidance

For 2021, the sales projection has been raised to $685-$695 million, indicating annual sales growth of 37% to 39% (earlier projection for 2021 was $670-$685 million). The Zacks Consensus Estimate for 2021 revenues is pegged at $681.09 million.

Full-year international sales are expected in the range of $168-$173 million, which suggests annual sales growth of 102% to 108%. This also represents a significant improvement from the prior guidance of $160-$165 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, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. 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 B. 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, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.