Tandem Diabetes Care, Inc. (TNDM) came out with quarterly loss at $0.27 per share. Compared to this, the Zacks Consensus Estimate is calling for a loss of $0.23. This compares to his loss of $0.01 per share a year ago. These figures have been adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -17.39%. A quarter ago, it was expected that this company would post a loss of $0.35 per share when it actually produced a loss of $0.38, delivering a surprise of -8.57%. .
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Tandem Diabetes Care, Inc., which belongs to the Zacks Medical – Instruments industry, posted revenue of $196.8 million for the quarter ended December 2023, missing the Zacks Consensus Estimate by 3.94%. In comparison, last year’s revenue was $220.5 million. The company has failed to beat consensus revenue estimates over the past four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s comments on the earnings call.
Tandem Diabetes Care, Inc. shares have fallen about 20.4% since the beginning of the year versus a rise of 4.3% in the S&P 500.
Future developments of Tandem Diabetes Care, Inc.
While Tandem Diabetes Care Inc. has underperformed the market so far this year, the question that comes to investors’ minds is: What’s next for this stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of the latest financial results announcement, Tandem Diabetes Care, Inc.’s earnings forecast revision trend is severe. Although the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status corresponds to a Zacks Rank #4 (Sell) for the stock. Therefore, the stock price is expected to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the next few quarters and the current fiscal year change going forward. The current consensus EPS estimates are -$0.54 on revenue of $189.07 million for the coming year and -$1.38 on revenue of $846.01 million for the current year.
Investors should be mindful of the fact that the industry outlook can also have a significant impact on stock price performance. In terms of Zacks Industry Rank, Medical – Equipment is currently in the top 35% of over 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Another stock in the same industry, Penumbra (PEN), has not yet released its financial results for the quarter ending December 2023. Financial results are scheduled to be announced on February 22nd.
This medical device maker is expected to post quarterly earnings of $0.71 per share in its upcoming report, which would represent a year-over-year change of +343.8%. Consensus EPS estimates for the quarter have been revised down by 0.3% to current levels over the past 30 days.
Penumbra’s sales are expected to increase 30% year-over-year to $287.54 million.
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