Tandem Diabetes hits 52-week low after guidance cut

Tandem Diabetes Care (NASDAQ:TNDM) lost ~18% on Thursday to reach a new 52-week low after the insulin pump maker reported worse-than-expected Q3 2023 financials and reduced its full-year sales outlook to a level below consensus.

The San Diego, California-based maker of t:slim X2 insulin delivery systems expects its full-year non-GAAP revenue to reach at least $765M, compared to $785M in the prior forecast and $788.0M in the consensus.

The company attributed the guidance cut to multiple factors, including a change in order timing with the upcoming launch of its t:slim X2 insulin pumps integrated with DexCom's (DXCM) G7 and Abbott's (ABT) FreeStyle Libre glucose sensors.

"This is impacting our distributors' fourth-quarter forecast, which they are adjusting (in) anticipation of this launch occurring just after the first of the year," CEO John Sheridan explained during the earnings call.

However, the company ruled out any adverse impact from a new class of weight-loss drugs called GLP-1 receptor agonists. "Our data shows the effects of these newer medications are really complementary with Control-IQ use," Medical Director Jordan Pinsker added.

In the wake of the results, Citi and Barclays, with Neutral and Overweight ratings on the stock, respectively, trimmed their price targets on TNDM.

While Q3 results topped their forecasts, "it will do little to placate investors given the full-year revenue guide was lowered yet again," Citi analyst Joanne Wuensch wrote, trimming her price target to $18 from $23 per share.

Noting that overseas sales prompted the guidance cut, Barclays analyst Matt Miksic slashed his price target on TNDM to $39 from $62. Tandem’s (TNDM) rivals include Medtronic (MDT) and Insulet (PODD) which is set to report its Q3 results on Thursday after the close.