Tandem Diabetes Care, Inc. TNDM posted a fourth-quarter 2024 loss of 44 cents per share compared with the year-ago quarter’s reported loss of 27 cents. The figure missed the Zacks Consensus Estimate of a loss of 25 cents per share.

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On a GAAP basis, the company reported earnings of 1 cent per share compared to the year-ago loss of 46 cents.

Full-year 2024 loss was $1.91 per share compared with the year-ago reported loss of $1.57. The figure missed the Zacks Consensus Estimate of a loss of $1.73.

Following the earnings announcement, TNDM stock fell 18.6% in aftermarket trading yesterday. 

TNDM’s Revenues

Non-GAAP revenues amounted to $252.4 million, up 28.3% year over year. The figure missed the Zacks Consensus Estimate by 1.1%. 

GAAP revenues in the quarter totaled $282.6 million, up 43.6% year over year. 

The company reported full-year 2024 non-GAAP revenues of $909.9 million, which increased 17.7% from the prior-year level. However, the figure missed the Zacks Consensus Estimate by 0.3%. 

From September 2022 through February 2024, TNDM 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.

TNDM’s Quarterly Performance in Detail

Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.

The United States

Non-GAAP sales in the United States totaled $184.4 million, up 12.8% year over year. Total sales in this region were $214.6 million on a GAAP basis. The company shipped more than 24,000 pumps in the fourth quarter.

Outside the United States

In the fourth quarter, TNDM registered non-GAAP sales of $68 million (same on a GAAP basis) compared with $45.9 million in the prior-year period.  

Margins

The gross profit in the reported quarter was $157.4 million, up 68.8% year over year. The gross margin expanded 830 basis points (bps) to 55.7% despite a 21% rise in the cost of sales.

SG&A expenses rose 23.4% to $105.8 million. R&D expenses increased 22.5% to $52.2 million.

The company registered an adjusted operating loss of $0.6 million in the fourth quarter compared with a loss of $35.1 million in the year-ago period.

Financial Position

Tandem Diabetes exited 2024 with cash, cash equivalents and short-term investments of $438.3 million compared with $467.9 million at the end of 2023.

TNDM’s 2025 Guidance

The company provided its full-year and first-quarter 2025 GAAP financial guidance.

Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise

Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote

For the full year, GAAP sales are estimated to be in the range of $97 million to $1.007 billion. The Zacks Consensus Estimate for full-year 2025 revenues is pegged at $1.01 billion.

GAAP sales in the United States are expected to be in the band of $725-$730 million. Sales outside the United States are projected to be in the range of $272-$277 million.

GAAP Sales for the first quarter of 2025 are estimated to be in the $219-$224 million range. The Zacks Consensus Estimate for revenues is pegged at $220.4 million.

Our Take

Tandem Diabetes’ fourth-quarter with lower-than-expected results, wherein both earnings and revenues lagging estimates. The company achieved record quarterly sales, both in the Unites States and internationally. This strong performance was driven by TNDM’s expanding product portfolio and underscored by the outstanding feedback on the newly launched Tandem Mobi. Meanwhile, the expansion of the gross margin amid rising costs is encouraging. 

During the fourth quarter, TNDM received FDA clearance for its Control-IQ+ to include people living with type 2 diabetes. Additionally, it entered into a multi-year collaboration agreement with the University of Virginia Center for Diabetes Technology to advance research and development efforts on fully automated closed-loop insulin delivery systems.

On the flip side, the company’s operating loss is concerning.

TNDM’s Zacks Rank & Key Picks

TNDM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Insulet PODD.

ResMed reported a second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

Insulet, presently carrying a Zacks Rank #2, posted a fourth-quarter 2024 adjusted EPS of $1.15, which topped the Zacks Consensus Estimate by 9.5%. Revenues of $597.5 million exceeded the Zacks Consensus Estimate by 2.7%.

PODD has an estimated long-term earnings growth rate of 20.3% compared with the industry’s 15.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 27.5%.

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