What's in Store for Tandem Diabetes' (TNDM) Q1 Earnings?

Zacks Equity Research

Tandem Diabetes Care, Inc. TNDM is scheduled to report first-quarter 2019 results on Apr 30, after market close.

In the fourth quarter of 2018, the company’s earnings per share was 2 cents against a net loss of $1.23 posted in the year-ago period. The Zacks Consensus Estimate was pegged at a loss of 22 cents. The company delivered positive earnings surprise in three of the trailing four quarters, with an average beat of 12.3%.

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

Factors at Play

In the last reported quarter, the roll-out of Tandem Diabetes’ unique insulin pump platform viz. t:slim X2 with Basal-IQ technologysignificantly strengthened the company’s foothold in the domestic diabetes care market.

This apart, increased supply capacity and renewal sales, strong core business, automated insulin delivery programs, and expansion into international markets considerably drove the company’s top line. Capturing 100% of its infusion set sales and providing an attractive solution for former Animas customers have also been key growth drivers for Tandem Diabetes in the last reported quarter. The company expects to witness similar trends in the first quarter of 2019 as well.

Tandem Diabetes Care, Inc. Price and EPS Surprise

 

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

 

In the fourth quarter, Tandem Diabetes’ pump shipments skyrocketed 133% year over year to 16,168 pumps. Of these, 3,200 pumps were shipped to international markets. Accordingly, the company recorded international sales of $7.1 million in the quarter. This growth trajectory is expected to continue in the to-be-reported quarter.

Hence, the Zacks Consensus Estimate for first-quarter revenues is pegged at $50.32 million, indicating 84.4% growth from the figure reported in prior-year quarter.

In February 2019, the FDA classified the t:slim X insulin pump as the first in a new device category called Alternate Controller Enabled Infusion Pumps (ACE pumps).Around the same time, Tandem Diabetes announced that it is now registered as an approved vendor of insulin pumps and supplies under the Assistive Devices Program (ADP) in Ontario, Canada.

These developments are expected to be reflected in the company’s first-quarter 2019 top line performance.

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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Tandem Diabetes has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that does not hint at earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

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

Cerner Corporation CERN has an Earnings ESP of +1.05% and a Zacks Rank #2.

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +0.49% and a Zacks Rank #2.

Stryker Corporation SYK has an Earnings ESP of +0.63% and a Zacks Rank #3.

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Cerner Corporation (CERN) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
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Stryker Corporation (SYK) : Free Stock Analysis Report
 
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