Tandem Diabetes Care Posts Q4 Profit As A Surprise

HIGHLIGHTS:

  • Q4 Profit of Tandem is surprisingly $2.7 million ($0.04 per share).
  • Tandem is forecasting sales of $450 million to $465 million.

Reporting quarterly results, Tandem Diabetes Care revealed an unexpected bottom-line profit. The company that is a well-known name in the market of insulin pumps and related products that are useful for treating diabetes, booked sales of almost $108.4 million in its Q4 of fiscal 2019. This was 42% higher on a year-over-year basis. Net income fell to just under $2.7 million ($0.04 per share), from Q4 of fiscal 2018’s nearly $3.7 million.

This is turning out to be a mixed quarter in relation to analyst estimates. Although, prognosticators following the stock had collectively anticipated a top-line result of $109 million, they expected a net loss equating to $0.07 per share.

Tandem’s sales have been rising unexpectedly due to its popular signature product line, the t:slim X2 insulin pump. 42% Sales growth in Q4 is down quite a bit from Q3’s near doubling. For this, Tandem gives credits to clients who are waiting for the company’s latest innovation to be approved by the Food & Drug Administration (FDA) for use with the t:slim X2s. Called Control-IQ, this is digital program adjusts insulin levels for patients using those products.

There is hope:

Proffering guidance, Tandem is forecasting sales of $450 million to $465 million. This could mean at least a 24% improvement on the fiscal 2019 result of $362 million. Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) are likely to land at 12% to 14% of sales. In 2019 this percentage landed at 13%.

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