Let’s dig into the relative performance of Tandem Diabetes (NASDAQ: TNDM) and its peers as we unravel the now-completed Q4 healthcare technology earnings season.
Healthcare Technology
The 9 healthcare technology stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.2% since the latest earnings results.
Tandem Diabetes (NASDAQ: TNDM)
With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.
Tandem Diabetes reported revenues of $282.6 million, up 43.6% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ sales volume estimates.
“2024 was a pivotal year for Tandem, as we returned to strong sales growth both in and outside of the United States, while delivering industry-leading customer satisfaction,” said John Sheridan, president and chief executive officer.
Unsurprisingly, the stock is down 49.5% since reporting and currently trades at $16.97.
Read our full report on Tandem Diabetes here, it’s free.
Best Q4: Phreesia (NYSE: PHR)
Founded in 2005 to streamline the traditionally paper-heavy patient check-in process, Phreesia (NYSE: PHR) provides software solutions that automate patient intake, registration, and payment processes for healthcare organizations while improving patient engagement in their care.
Phreesia reported revenues of $109.7 million, up 15.4% year on year, outperforming analysts’ expectations by 0.7%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $24.19.
Is now the time to buy Phreesia? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Evolent Health (NYSE: EVH)
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Evolent Health reported revenues of $646.5 million, up 16.3% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Evolent Health delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 7.2% since the results and currently trades at $9.96.
Read our full analysis of Evolent Health’s results here.
Premier (NASDAQ: PINC)
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Premier reported revenues of $240.3 million, down 14.2% year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
Premier had the slowest revenue growth among its peers. The stock is down 15.2% since reporting and currently trades at $19.01.
Read our full, actionable report on Premier here, it’s free.
Omnicell (NASDAQ: OMCL)
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ: OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Omnicell reported revenues of $306.9 million, up 18.6% year on year. This result beat analysts’ expectations by 2.2%. Taking a step back, it was a slower quarter as it recorded revenue guidance for next quarter missing analysts’ expectations.
The stock is down 29% since reporting and currently trades at $31.52.
Read our full, actionable report on Omnicell here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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