Shares in both Tandem Diabetes Care (NSDQ:TNDM) and Dexcom Inc. (NSDQ:DXCM) took a dive today after the companies released 3rd quarter earnings results that missed expectations from analysts on Wall Street.
Tandem Diabetes saw its stock plummet over 50% today after the diabetes-focused device posted losses per share that were nearly double of what analysts on Wall Street expected.
The company posted losses of $29.8 million, or 97¢ per share, on sales of $12.3 million for the 3 months ended September 30, with losses growing 52.2% while sales shrunk 21.8% compared with the same period last year.
Losses per share were 39¢ higher than the 58¢ per share analysts on Wall Street were looking for. Revenues also fell short, with The Street expecting to see $23.4 million.
“For 3 consecutive years we have offered the #1 rated insulin pump and maintained a #1 customer service rating, resulting in the tremendous growth of our installed base which is now more than 46,000 people. Our family of products, headlined by our recent launch of the t:slim X2 Insulin Pump, positions us well in an increasingly competitive environment,” prez & CEO Kim Blickenstaff said in a press release.
Tandem Diabetes updated its guidance for the full year 2016, expecting to see non-GAAP sales between $85 and $90 million, down from $105 to $110 million.
“The short term challenges that we face do not overshadow our expectations for long term success. However, after considering our third quarter results and evolving market dynamics, we believe it is appropriate to reduce our 2016 guidance,” CFO John Cajigas said in a prepared statement.
Shares crashed today in response to the news, closing 58.8% down at $2.20.
DexCom shares took a significant hit as well, dropping nearly 20% in response to missed expectations on The Street.
The company posted losses of $18.8 million, or 22¢ per share, on sales of $148.6 million for the 3 months ended September 30. That works out to a 55.8% growth in losses while sales grew 42.6% compared to the same period in 2015, according to a company release.
After adjusting to exclude 1-time items, losses per share were still 22¢, 9¢ off what The Street was looking for. Revenue topped the Street’s expectations, with analysts expecting to see $146.3 million.
Shares dropped $14.99 to close at $62.93, decreasing approximately 19.2%.