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Tandem Diabetes Care: Stock Still Soaring after Q2 2018 Results

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TNDM stock performance

On August 2, Tandem Diabetes Care (TNDM) stock closed at $31.39. That’s a 9.87% rise from its prior day’s close of $28.57. The company released its second-quarter financial results on July 30, and the next day, the stock rose 10.95% to $27.56 from its prior day’s close of $24.84.

TNDM stock hit its 52-week high of $32.05 on August 2. It hit its 52-week low of $2.14 on February 9.

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Tandem’s Q2 2018 financial results in a nutshell

In the second quarter of 2018, Tandem Diabetes Care’s net revenues grew 60% to $34.1 million compared to $21.3 million in the second quarter of 2017.

It reported a net loss and net loss per share of $59.4 million and $1.17, respectively, in the second quarter compared to $21.8 million and $4.36, respectively, in the second quarter of 2017.

Its operating margin in the second quarter was -41% compared to -89% in the second quarter of 2017.

Insulin pump shipments saw a 59% growth to 5,447 pumps in the second quarter compared to 3,427 pumps in Q2 2017.

It reported net operating expenses of $29.1 million in the second quarter compared to $22.1 million in Q2 2017.

Updated financial guidance for 2018

Tandem Diabetes Care anticipates net revenues in fiscal 2018 to be $140 million–$148 million, which reflects 30%–38% year-over-year growth.

It anticipates an operating margin of -45% to -40%, including ~$20 million in non-cash, stock-based compensation expenditure and $7 million–$8 million in depreciation and amortization.

Analyst recommendations

Of the six analysts tracking Tandem Diabetes Care in August, two of them have recommended a “strong buy,” and three of them have recommended a “buy.” One analyst has recommended a “hold.”

Tandem Diabetes Care’s peers in the medical equipment market include Zimmer Biomet Holdings (ZBH) and DexCom (DXCM) with reported revenues of $2 billion and $242.5 million, respectively, in the second quarter of 2018.

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