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What's in Store for Tandem Diabetes' (TNDM) Q4 Earnings?

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Tandem Diabetes Care, Inc. TNDM is scheduled to report fourth-quarter 2018 results on Feb 26, after market close.

In the last reported quarter, the company’s earnings per share surpassed the Zacks Consensus Estimate by 11.8%. The company delivered positive surprises in three of the trailing four quarters. However, a 74.6% miss in one of the four quarters led to an average miss of 14%.

Let’s take a look at how things are shaping up prior to this announcement.

Factors at Play

Tandem Diabetes is expected to see continued strength in pump sales. The company is witnessing increased number of healthcare providers prescribing Tandem Diabetes’ pumps. Accordingly, pumps shipments rose 118% year over year in third-quarter 2018. This growth trajectory is expected to be maintained in the to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter total pump shipments is projected at 9,291, indicating a rise of 33.7% from the prior-year quarter.

Tandem Diabetes also expects to continue to see strong renewal sales with the ongoing expiration of warranties from around 11,000 customers who bought pumps in 2014. Notably, the company shipped 1100 renewals in the last quarter compared with 600 a year ago.

Tandem Diabetes Care, Inc. Price and EPS Surprise


Tandem Diabetes Care, Inc. Price and EPS Surprise | Tandem Diabetes Care, Inc. Quote

Led by a growing number of ordering customers along with the increased sales of infusion set across the entire install base for the third quarter of 2018, Tandem Diabetes witnessed a 66.7% year-over-year rise in supplies sales. This trend is expected to show on the top-line performance in the to-be-reported quarter.

Tandem Diabetes’ fourth-quarter results are expected to continue to gain from solid response to the t:slim X2 Insulin Pump with Basal-IQ predictive low glucose suspend technology in the United States last August.

We are also looking forward to top-line contributions from the receipt of Heath Canada Medical Device License for the t:slim X2 Insulin Pump last October.

Tandem Diabetes is consistently focusing on strengthening its global presence. In this regard, in the second quarter, the company entered into agreements with independent distributors in Australia, New Zealand, Italy, Scandinavia, South Africa, Spain and the United Kingdom. Also, the recently updated sales guidance for 2018 includes a projected $7-$8 million of sales in select regions outside the United States and had begun in August 2018.

Tandem Diabetes recently raised the sales guidance for 2018, buoyed by consistent strength in domestic sales, recent launch of Basel-IQ technology along with the launch of t:slim X2 Insulin Pump in select geographies. The company raised 2018 sales guidance to $160-$165 million from $150-$158 million. The revised guidance represents annual sales growth of around 49-53% from around $107.6 million in 2017.

The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $56.5 million, indicating a rise of 40.3% from the prior-year quarter.

Here’s What Our Quantitative Model Predicts

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP.

Tandem Diabetes has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that does not hint at an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for a loss of 22 cents per share reflects an improvement of 82.1% on a year-over-year basis.

Stocks Worth a Look

Here are a few stocks worth considering as they have the right combination of elements to post an earnings beat in their upcoming quarterly results.

Masimo Corporation MASI has an Earnings ESP of +1.04% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aduro Biotech ADRO has an Earnings ESP of +15.23% and a Zacks Rank of #2.

AC Immune SA ACIU has an Earnings ESP of +86.79% and a Zacks Rank #3.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report
Masimo Corporation (MASI) : Free Stock Analysis Report
Aduro Biotech, Inc. (ADRO) : Free Stock Analysis Report
AC Immune SA (ACIU) : Free Stock Analysis Report
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