We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DexCom (DXCM) Q4 Earnings: What to Expect from the Stock?
Read MoreHide Full Article
DexCom, Inc. (DXCM - Free Report) is set to report fiscal fourth-quarter 2017 results on Feb 28.
DexCom does not have an impressive track of beating estimates in the four trailing quarters. In the last reported quarter, it recorded a negative earnings surprise of 57.14%, bringing the four-quarter average to a negative 59.96%. However, in the past three months, DexCom gained almost 7.95%, outperforming the Zacks categorized Medical Instruments sub-industry’s gain of roughly 6.74%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
We believe the glucose monitoring and diabetes market represents significant commercial opportunity for DexCom, and are likely to be the key catalysts for the company in the fourth quarter. The medical device company expects preliminary, unaudited revenue of approximately $168 million for the fourth quarter ended Dec 31, 2016. This reflects an increase of 28% over the fourth quarter of 2015. The upside expected in revenues was due to an estimated 80,000 to 90,000 new patients adopting DexCom Continuous Glucose Monitoring (CGM) worldwide.
The company continues to witness flat pricing, owing to price discounting in larger accounts, limited product offerings and international price cuts. Further, DexCom derives a significant part of total revenue from international operations, which is adversely affected by fluctuations in foreign currency exchange rates.
Moreover, overall activities of DexCom during the fourth quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter to be reported fell two cents to a loss of nine cents per share in the last 90 days.
Earnings Whispers
However, our proven model does not conclusively show that DexCom is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: DexCom currently has an Earnings ESP of -66.67%. That is because the Most Accurate estimate stands at a loss of 15 cents and the Zacks Consensus Estimate is pegged at a loss of 9 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: DexCom currently carries a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, the company’s -66.67% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat:
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200.00% and a Zacks Rank #2.
Zynerba Pharmaceuticals, Inc. has an Earnings ESP of +2.74% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
DexCom (DXCM) Q4 Earnings: What to Expect from the Stock?
DexCom, Inc. (DXCM - Free Report) is set to report fiscal fourth-quarter 2017 results on Feb 28.
DexCom does not have an impressive track of beating estimates in the four trailing quarters. In the last reported quarter, it recorded a negative earnings surprise of 57.14%, bringing the four-quarter average to a negative 59.96%. However, in the past three months, DexCom gained almost 7.95%, outperforming the Zacks categorized Medical Instruments sub-industry’s gain of roughly 6.74%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
We believe the glucose monitoring and diabetes market represents significant commercial opportunity for DexCom, and are likely to be the key catalysts for the company in the fourth quarter. The medical device company expects preliminary, unaudited revenue of approximately $168 million for the fourth quarter ended Dec 31, 2016. This reflects an increase of 28% over the fourth quarter of 2015. The upside expected in revenues was due to an estimated 80,000 to 90,000 new patients adopting DexCom Continuous Glucose Monitoring (CGM) worldwide.
The company continues to witness flat pricing, owing to price discounting in larger accounts, limited product offerings and international price cuts. Further, DexCom derives a significant part of total revenue from international operations, which is adversely affected by fluctuations in foreign currency exchange rates.
Moreover, overall activities of DexCom during the fourth quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter to be reported fell two cents to a loss of nine cents per share in the last 90 days.
Earnings Whispers
However, our proven model does not conclusively show that DexCom is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: DexCom currently has an Earnings ESP of -66.67%. That is because the Most Accurate estimate stands at a loss of 15 cents and the Zacks Consensus Estimate is pegged at a loss of 9 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. Price and EPS Surprise | DexCom, Inc. Quote
Zacks Rank: DexCom currently carries a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, the company’s -66.67% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat:
Masimo Corporation (MASI - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis, Inc. (EXEL - Free Report) has an Earnings ESP of +200.00% and a Zacks Rank #2.
Zynerba Pharmaceuticals, Inc. has an Earnings ESP of +2.74% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>