Tandem Diabetes stock rises after preliminary sales hit reduced guidance, 2023 forecast exceeds mark

Tandem Diabetes Inc.
TNDM,
-1.55%
shares gained nearly 7% in after-hours trading Tuesday, following preliminary quarterly sales information that lived up to reduced guidance from the company. Tandem disclosed that it reached sales of $221 million in the fourth quarter, up from $210 million a year ago, for an annual total of $802 million. Executives reduced their annual guidance to adjusted revenue of $800 million to $805 million in November, part of a swoon in financial expectations and the company’s stock price in 2022. Shares have fallen nearly 66% in the past year, as growth has slowed down and executives have blamed the U.S. healthcare system, noting that it does not universally pay for the type of insulin pumps that Tandem sells. Executives also provided a preliminary 2023 forecast that calls for 11% to 12% sales growth from 2022’s total, which suggests an annual total approaching $900 million. Analysts on average were projecting 2023 revenue of $890.6 million, according to FactSet. Executives expect to release full fourth-quarter results on Feb. 22. Shares closed Tuesday with a 1.6% decline at $44.42 before moving to $47.50 in the extended session after the news was released.