How Will Tandem’s Q3 Operational Performance Stack Up?

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.

How Will Tandem’s Q3 Operational Performance Stack Up?

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.