Tandem Diabetes shares crashed Thursday after the insulin pump-maker issued light sales guidance for 2025.
For the year, the company expects $997 million to $1.007 billion in sales. The high end of Tandem's outlook missed analysts' forecast for $1.008 billion, according to FactSet.
At least six analysts cut their price targets on Tandem Diabetes stock.
UBS analyst Danielle Antalffy trimmed her target on Tandem to 35 from 40, but reiterated a neutral rating.
"We do think TNDM's various investments in growth initiatives should give investors confidence that double-digit sales growth is sustainable and growth should reaccelerate over the next few years," she said in a client note.
But at the close, Tandem Diabetes shares plunged 35.3% to 21.75. The stock gapped down to its lowest point since December 2023.
Tandem Diabetes: Sales Beat, Unexpected Profit
During the three months ended Dec. 31, Tandem Diabetes brought in $252.4 million in adjusted sales, up 21%. The Street projected a slightly lower $250.6 million, according to FactSet. On a strict, as-reported basis, sales grew 44% to $282.6 million.
But Antalffy noted U.S. sales missed expectations by 3%. This was driven by a slower-than-expected December vs. typical seasonal strength, and shipping delays in the last month of the year.
More promisingly, Tandem Diabetes came up with a 1-cent gain per share, beating expectations for a 22-cent loss. That also flipped from a year-ago loss of 46 cents per share.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
