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Tandem Diabetes (NASDAQ:TNDM) Stock Tanks on Dismal Q3 Results, Weak Outlook

Story Highlights

Shares of Tandem Diabetes Care plunged after the company reported a higher-than-anticipated Q3 loss and lowered its full-year outlook amid macro challenges. 

Insulin pump maker Tandem Diabetes Care (NASDAQ:TNDM) yet again disappointed investors with poor third-quarter results and a guidance cut. Q3 sales grew nearly 14% to $204.5 million (adjusted sales $205.1 million), missing analysts’ estimate of $207.6 million.

Tandem slipped to a loss per share of $0.76 from earnings per share of $0.09 in the prior-year quarter and significantly lagged the Street’s estimate of a loss per share of $0.05. TNDM stock plunged about 23% in Wednesday’s trading session. Shares have plummeted 70% year-to-date.

The company cited multiple headwinds during the Q3 conference call for its weak performance, including staffing shortages, intense competition in the U.S., and economic challenges.

For the full year, Tandem now expects adjusted sales in the range of $800 million to $805 million, down from the prior guidance range of $835 million to $845 million. The revised guidance reflects sales growth of 14% to 15%.

CFO Leigh Vosseller stated, “In this highly variable environment, we are factoring greater caution into our guidance to re-baseline expectations for the next few quarters,”

“The timing of our potential new product introductions next year adds increased complexity to the current market dynamics, so we feel it’s prudent for our guidance to reflect more moderate growth in periods between new product launches,” added Vosseller.

Is Tandem Diabetes Stock a Buy?

Wall Street is cautiously optimistic about Tandem Diabetes stock, with a Moderate Buy consensus rating based on nine Buys, two Holds, and one Sell. The average TNDM stock price target of $88.25 implies 72% upside potential.

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