A Preview Of Tandem Diabetes Care's Earnings

On Wednesday, February 24, Tandem Diabetes Care TNDM will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect Tandem Diabetes Care's EPS to be near $0.12 on sales of $141.58 million. In the same quarter last year, Tandem Diabetes Care reported EPS of $0.04 on revenue of $108.40 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 200.0% increase in the company's earnings. Revenue would be have grown 30.61% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Tandem Diabetes Care were trading at $92.89 as of February 22. Over the last 52-week period, shares are up 15.88%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Tandem Diabetes Care is scheduled to hold the call at 16:30:00 ET and can be accessed here.