Why Tandem Diabetes Care Stock Popped Today

Shares of Tandem Diabetes Care (TNDM 10.87%) climbed 10.9% on Thursday despite weaker-than-expected quarterly results from the diabetes treatment device company. The market appears to be focused on Tandem Diabetes’ encouraging forward outlook.

Tandem Diabetes is building momentum

For its fourth quarter of 2023, Tandem Diabetes’ revenue declined 10.8% year over year to $196.8 million, translating to a net loss of $30 million, or $0.46 per share. Adjusted for nonrecurring items, Tandem Diabetes’ (non-generally accepted accounting principles, or non-GAAP) net loss was $17.5 million, or $0.27 per share. Most analysts were modeling a slightly narrower net loss of $0.26 per share on revenue closer to $203 million.

Tandem CEO John Sheridan said the company ended the year on a “high note,” adding that it’s “demonstrating positive momentum across key areas of our business, including the unprecedented accomplishment of introducing four new products in the United States.”

Indeed, Tandem increased its worldwide installed base by 7% year over year to roughly 452,000 in-warranty customers during the fourth quarter. It also launched both its small form-factor Tandem Mobi Automated Insulin Delivery (AID) System and its new diabetes management platform, dubbed Tandem Source, in the United States.

What’s next for Tandem Diabetes investors?

Looking ahead to the full-year 2024, Tandem Diabetes expects adjusted (non-GAAP) sales of $850 million — well above current consensus estimates for 2024 sales of $843 million — including $625 million in sales within the U.S. and $225 million of sales internationally.

In the end, this is a forward-looking market that seems to be rewarding Tandem Diabetes for its accelerated growth in the coming year. If Tandem can couple that growth with improvements to its bottom line, the stock might well have plenty of room to run higher from here.