A week ago, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Results overall were credible, with revenues arriving 8.9% better than analyst forecasts at US$244m. Higher revenues also resulted in lower statutory losses, which were US$0.35 per share, some 8.9% smaller than the analysts expected. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tandem Diabetes Care after the latest results.
Check out our latest analysis for Tandem Diabetes Care
After the latest results, the 19 analysts covering Tandem Diabetes Care are now predicting revenues of US$1.00b in 2025. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to US$1.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$988.4m and losses of US$1.15 per share in 2025. So it’s pretty clear consensus is mixed on Tandem Diabetes Care after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.
The consensus price target held steady at US$51.45, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company’s valuation. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Tandem Diabetes Care analyst has a price target of US$75.00 per share, while the most pessimistic values it at US$18.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Tandem Diabetes Care’shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.3% per year. So although Tandem Diabetes Care is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
