Diabetes technology company Tandem Diabetes Care (NASDAQ:TNDM) will be reporting earnings tomorrow after the bell. Here’s what to expect.
Tandem Diabetes beat analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $242.9 million, up 25.3% year on year. It was a very strong quarter for the company, with full-year revenue guidance beating analysts’ expectations and a solid beat of analysts’ EPS estimates.
Is Tandem Diabetes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tandem Diabetes’s revenue to grow 19.7% year on year to $250.5 million, a reversal from the 6.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tandem Diabetes has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at Tandem Diabetes’s peers in the healthcare technology segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Hims & Hers Health delivered year-on-year revenue growth of 95.1%, beating analysts’ expectations by 2.2%, and Premier reported a revenue decline of 14.2%, in line with consensus estimates. Premier traded down 14.3% following the results.
Read our full analysis of Hims & Hers Health’s results here and Premier’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the healthcare technology stocks have shown solid performance, the group has generally underperformed, with share prices down 5.4% on average over the last month. Tandem Diabetes is down 10.7% during the same time and is heading into earnings with an average analyst price target of $51.10 (compared to the current share price of $33).
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