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Tandem Diabetes (TNDM) Q2 Earnings Beat, '24 View Raised
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Tandem Diabetes Care, Inc. (TNDM - Free Report) reported a loss of 47 cents per share in the second quarter of 2024 compared with the year-ago quarter’s reported loss of 30 cents. However, the figure was narrower than the Zacks Consensus Estimate of a loss of 54 cents per share.
On a GAAP basis, the loss was 47 cents per share in the second quarter compared with the year-ago period’s loss of 55 cents.
Q2 Revenues
GAAP revenues in the quarter totaled $221.9 million, up 13.3% year over year. The figure topped the Zacks Consensus Estimate by 7.7%.
Non-GAAP revenues amounted to $221.8 million, up 12% 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.
Quarter 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 $156.7 million on a GAAP basis, up 9.9% year over year. Non-GAAP sales in the United States totaled $156.6 million. The company shipped more than 20,000 pumps in the second quarter.
Outside the United States
In the second quarter, the company registered GAAP sales of $65.2 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 $112.8 million, up 10.9% year over year. The gross margin contracted 110 basis points (bps) to 50.9% due to a 15.9% rise in the cost of sales.
SG&A expenses declined 3.5% to $94.2 million. R&D expenses rose 14.9% to $49.3 million.
The company registered an adjusted operating loss of $30.8 million in the second quarter compared with a loss of $38.9 million in the year-ago period.
Financial Position
Tandem Diabetes exited the second quarter of 2024 with cash, cash equivalents and short-term investments of $452.4 million compared with $467.8 million at the end of the first quarter of 2024.
Updated 2024 Guidance
Tandem Diabetes raised its financial outlook for 2024.
For the full year, non-GAAP sales are estimated to be in the range of $885-$892 million (earlier $868 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $868.5 million.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Non-GAAP sales in the United States are expected to be in the band of $640-$645 million (previously $634 million). Sales outside the United States are projected to be in the range of $245-$247 million (earlier $234 million).
For the third quarter, the company expects to generate non-GAAP sales in the $222-$225 million range. Within this, sales inside the United States are expected to be in the band of $162-$165 million, and the same outside the country is projected to be $60 million. The Zacks Consensus Estimate for revenues is pegged at $223.6 million.
Our Take
Tandem Diabetes’ second-quarter earnings and revenues surpassed estimates. The strong performance was fueled by robust demand for both t:slim X2 and the newly launched Tandem Mobi, which enabled the company to address a large number of people living with diabetes. However, the contraction of the gross margin amid rising costs is discouraging.
Also, the raised outlook for the full year bodes well for the stock. Tandem Diabetes met some milestones through the launch of multiple new products, including new sensor integrations, and Tandem Source worldwide.
On the flip side, the decline in sales outside the United States is concerning.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% in 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
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Tandem Diabetes (TNDM) Q2 Earnings Beat, '24 View Raised
Tandem Diabetes Care, Inc. (TNDM - Free Report) reported a loss of 47 cents per share in the second quarter of 2024 compared with the year-ago quarter’s reported loss of 30 cents. However, the figure was narrower than the Zacks Consensus Estimate of a loss of 54 cents per share.
On a GAAP basis, the loss was 47 cents per share in the second quarter compared with the year-ago period’s loss of 55 cents.
Q2 Revenues
GAAP revenues in the quarter totaled $221.9 million, up 13.3% year over year. The figure topped the Zacks Consensus Estimate by 7.7%.
Non-GAAP revenues amounted to $221.8 million, up 12% 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.
Quarter 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 $156.7 million on a GAAP basis, up 9.9% year over year. Non-GAAP sales in the United States totaled $156.6 million. The company shipped more than 20,000 pumps in the second quarter.
Outside the United States
In the second quarter, the company registered GAAP sales of $65.2 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 $112.8 million, up 10.9% year over year. The gross margin contracted 110 basis points (bps) to 50.9% due to a 15.9% rise in the cost of sales.
SG&A expenses declined 3.5% to $94.2 million. R&D expenses rose 14.9% to $49.3 million.
The company registered an adjusted operating loss of $30.8 million in the second quarter compared with a loss of $38.9 million in the year-ago period.
Financial Position
Tandem Diabetes exited the second quarter of 2024 with cash, cash equivalents and short-term investments of $452.4 million compared with $467.8 million at the end of the first quarter of 2024.
Updated 2024 Guidance
Tandem Diabetes raised its financial outlook for 2024.
For the full year, non-GAAP sales are estimated to be in the range of $885-$892 million (earlier $868 million). The Zacks Consensus Estimate for full-year 2024 revenues is pegged at $868.5 million.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote
Non-GAAP sales in the United States are expected to be in the band of $640-$645 million (previously $634 million). Sales outside the United States are projected to be in the range of $245-$247 million (earlier $234 million).
For the third quarter, the company expects to generate non-GAAP sales in the $222-$225 million range. Within this, sales inside the United States are expected to be in the band of $162-$165 million, and the same outside the country is projected to be $60 million. The Zacks Consensus Estimate for revenues is pegged at $223.6 million.
Our Take
Tandem Diabetes’ second-quarter earnings and revenues surpassed estimates. The strong performance was fueled by robust demand for both t:slim X2 and the newly launched Tandem Mobi, which enabled the company to address a large number of people living with diabetes. However, the contraction of the gross margin amid rising costs is discouraging.
Also, the raised outlook for the full year bodes well for the stock. Tandem Diabetes met some milestones through the launch of multiple new products, including new sensor integrations, and Tandem Source worldwide.
On the flip side, the decline in sales outside the United States is concerning.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% in 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.