Tandem Diabetes Care (Nasdaq:TNDM) shares took a massive hit after hours today on third-quarter results that missed the consensus forecast.
Shares of TNDM fell nearly 20% at $14.27 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day up 1.1%.
The San Diego-based automated insulin delivery technology developer posted losses of $32.96 million. That equals 51¢ per share on sales of $185.6 million for the three months ended Sept. 30, 2023.
Tandem recorded a 32.7% bottom-line gain while remaining in the red on a sales decline of 9.3%.
The company’s losses per share fell 17¢ short of Wall Street expectations. Sales also fell shy of the forecast for $192.7 million in revenue.
Shortfalls in performance weren’t entirely unexpected, though. Tandem said last quarter that updates to its portfolio and reduced visibility on sales for the near future could hinder performance.
Highlights in the quarter included an 11% increase in the worldwide installed base compared to the same period a year ago. Tandem also announced positive data for its t:slim X2 system and commenced a limited U.S. launch of its new Mobi insulin patch pump.
“In this transitional year, we are focused on bringing the benefits of our #1 rated automated insulin delivery system to more people living with diabetes worldwide, providing customer care excellence and advancing our scalability initiatives,” said John Sheridan, Tandem president and CEO. “There is a large and growing opportunity for Tandem’s technology to drive greater use of automated insulin delivery worldwide, and we are advancing our efforts to expand this adoption through our near-term portfolio of diabetes solutions.”
Tandem lowers guidance again
Last quarter, due to additions to its portfolios and expected disruption ahead, Tandem amended its guidance for the full year. At the end of the first quarter, the company projected GAAP revenues ranging between $885 million and $900 million.
In the second quarter, Tandem said it expects non-GAAP sales to reach at least $785 million for the year ending Dec. 31, 2023.
Today, the company lowered expectations again. It now projects non-GAAP sales to total at least $765 million. Adjusted EBITDA margin is estimated to be at least breakeven as a percent of sales. Tandem did reaffirm its U.S. guidance for non-GAAP sales of at least $575 million.
“We are reaffirming our U.S. guidance, which is largely based on strong t:slim X2 renewal purchases and supply ordering trends. Our adjusted baseline expectations outside the U.S. factors in new disruption reported by our distribution partners in key markets and relates to the timing and process for new product launches,” said Leigh Vosseller, EVP and CFO. “We continue to yield positive results from our cost-saving initiatives, which is reflected in our reaffirmed margin expectations, as we focus on executing against our growth opportunity with efficiency and discipline.”