Gross margins
The cost of goods sold incurred by Tandem Diabetes Care (TNDM) is expected to increase in line with revenues by 55.66% from $14.4 million in the third quarter of fiscal 2017 to $22.41 million in the third quarter of fiscal 2018. Its gross income is expected to jump by 106.6% from $9.3 million in the third quarter of fiscal 2017 to $19.21 million in the third quarter of fiscal 2018. This estimate indicates an expansion in the company’s gross margins from 39.0% for the third quarter of fiscal 2017 to 46.09% for the third quarter of fiscal 2018.
Tandem’s gross margins for fiscal 2018 and 2019 are expected at 45.91% and 51.52%, respectively. In comparison, fiscal 2018 gross margins for peers DexCom (DXCM), Insulet (PODD), and Stryker (SYK) are expected at 64.62%, 64.97%, and 66.27%, respectively.
Operational performance
Tandem Diabetes Care is expected to incur selling, general, and administrative expenses of $28.14 million in the third quarter of 2018 compared to $25.04 million in the third quarter of 2017, an increase of 12.39%. The company’s research and development expenses are also expected to increase by 48.29% to $7.29 million in the third quarter of 2018 from the year-ago period.
We’ll take a look at Tandem Diabetes Care’s expected bottom line numbers for the third quarter of fiscal 2018 and the recent major developments with the company in the next part.
