Yahoo Finance DexCom (DXCM) to Report Q4 Earnings: What's in the Cards?
DexCom, Inc. DXCM is scheduled to release fourth-quarter 2022 results on Feb 9, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 16.67%. Its earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, beat once and met the same once, the average negative surprise being 10.07%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for DexCom’s fourth-quarter revenues is pegged at $811.8 million, indicating growth of 16.3% from the year-ago reported figure. The consensus mark for earnings stands at 26 cents per share, indicating an improvement of 52.9% from the prior-year quarter.
Factors to Note
DexCom’s fourth-quarter top line is likely to have been aided by continued increase in volume, courtesy of new patients across all channels and rising global awareness about the benefits of its real-time Continuous Glucose Monitoring (“CGM”). Potential robust contributions from the Sensor segment and domestic and international revenue growth are likely to be the key catalysts for fourth-quarter results. The company’s preliminary results for the fourth quarter estimated total revenues to be $815 million, implying an increase of 17% year over year on a reported basis.
During the first nine months of 2022, the company continued with expanding access and accelerating its leadership in CGM-connected solutions and customer choice. DexCom continues to launch the Dexcom ONE product in new countries. These developments are likely to have benefited customer growth during the soon-to-be-reported quarter.
Last year, the company received the FDA’s Breakthrough Device Designation for the Dexcom CGM system’s use in the hospital setting. DexCom also secured the CE mark for the Dexcom G7 CGM System for monitoring people with diabetes aged two years and older, and initiated a limited launch of the system in Europe in 2022. DexCom expanded coverage for Dexcom CGM to include type 1 diabetes in Ontario, Canada. Moreover, TRICARE added Dexcom G6 as a brand-name formulary pharmacy benefit.
DexCom, Inc. Price and Consensus
DexCom, Inc. price-consensus-chart | DexCom, Inc. Quote
These developments may have favored the company’s performance in the to-be-reported quarter. On an organic basis (excluding non-continuous glucose monitoring or non-CGM revenue acquired in the trailing 12 months and the foreign exchange impact), fourth-quarter revenues are likely to have witnessed an uptick of 20% year over year.
DexCom has been benefiting from demographic trends and lifestyles in countries outside Europe and the United States. Per the company, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.
In third-quarter 2022, international revenues (25% of total revenues) surged 22.2% year over year to $196.2 million. U.S. revenues (75% of total revenues) were up 17.1% in the same period. The momentum is likely to have continued in the fourth quarter, thanks to broad-based growth. The company’s preliminary U.S. revenues in the fourth quarter are estimated to be approximately $606 million, indicating a year-over-year uptick of 17%. Preliminary International revenues are estimated to be $209 million, implying an improvement of 15% from the prior-year period on a reported basis and 26% on an organic basis. The Zacks Consensus Estimate for U.S. and International revenues is pegged at $590 million and $215 million, respectively, for the fourth quarter.
However, an increase in operating expenses and intense competition might have weighed on the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Our proven model does not conclusively predict an earnings beat for DexCom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%.
Zacks Rank: DexCom carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Worth a Look
Here are some medical instrument stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Hologic HOLX has an Earnings ESP of +1.32% and a Zacks Rank of 1.
Hologic’s stock has gained 16.3% in the past six months. HOLX topped earnings estimates in the last reported quarter. It has a four-quarter earnings surprise of 30.60%, on average.
IDEXX Laboratories IDXX has an Earnings ESP of +1.04% and a Zacks Rank of 2.
IDEXX Laboratories’ stock has gained 18.6% in the past six months. IDXX beat earnings estimates in the last reported quarter. It has a four-quarter earnings surprise of 5.19%, on average.
ShockWave Medical SWAV has an Earnings ESP of +4.40% and a Zacks Rank of 2.
ShockWave Medical’s stock has declined 15.5% in the past six months. SWAV beat earnings estimates in the last reported quarter. It has a four-quarter earnings surprise of 146.10%, on average.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report
