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DexCom (DXCM) Q3 Loss Narrower Than Expected, Revenues Meet
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DexCom, Inc. (DXCM - Free Report) reported a loss of 3 cents per share in the third quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 15 cents. Also, the figure improved from a loss of 22 cents reported in the year-ago quarter.
Total revenues grew 24.2% to $184.6 million from $148.6 million in the year-ago quarter. Revenues met the Zacks Consensus Estimate.
Segmental details
Sensor revenues (71% of total revenues) grew 24% on a year-over-year basis to $131.1 million. Transmitter revenues (21%) increased 20% from the prior-year quarter to $38.2 million. Receiver revenues (8%) grew 15% year over year to $14.4 million. Other revenues (including revenues from services, freight, accessories, etc.), accounting for the rest, totaled $0.9 million.
DexCom generated gross margin (as a percentage of revenues) of 68.8%, compared with 68% in the same quarter of the prior year. Notably, gross margin expanded 76 basis points (bps) year over year.
International business displayed continued to grow in the quarter, generating $33.3 million in revenues, up 83% on a year-over-year basis. Notably, international business represented 18% of total revenues in the third quarter.
Research and development (R&D) expenses totaled $43.3 million in the quarter, contracting 1.4% from $43.9 million a year ago.
Selling, general and administrative expenses totaled $84.2 million in the reported quarter, increasing 11.2% from $75.7 million in the prior-year quarter.
Financial Update
As of Sep 30, DexCom had $525.8 million in cash, cash equivalents and short-term marketable securities versus $496.6 million at the end of the second quarter of 2017.
Guidance
The company expects global revenues to come in at the low end of its previously issued guidance of $710 million to $740 million. For the full year, DexCom reaffirmed the low end of the 67% to 70% gross margin guidance.
Zacks Rank & Key Picks
DexCom has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . Notably, PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 bps year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. The company’s revenues in the quarter increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Also, revenues increased 18% year over year to $806.1 million.
Zacks’ Best Private Investment Ideas
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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DexCom (DXCM) Q3 Loss Narrower Than Expected, Revenues Meet
DexCom, Inc. (DXCM - Free Report) reported a loss of 3 cents per share in the third quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 15 cents. Also, the figure improved from a loss of 22 cents reported in the year-ago quarter.
Total revenues grew 24.2% to $184.6 million from $148.6 million in the year-ago quarter. Revenues met the Zacks Consensus Estimate.
Segmental details
Sensor revenues (71% of total revenues) grew 24% on a year-over-year basis to $131.1 million. Transmitter revenues (21%) increased 20% from the prior-year quarter to $38.2 million. Receiver revenues (8%) grew 15% year over year to $14.4 million. Other revenues (including revenues from services, freight, accessories, etc.), accounting for the rest, totaled $0.9 million.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. Price, Consensus and EPS Surprise | DexCom, Inc. Quote
Operational Details
DexCom generated gross margin (as a percentage of revenues) of 68.8%, compared with 68% in the same quarter of the prior year. Notably, gross margin expanded 76 basis points (bps) year over year.
International business displayed continued to grow in the quarter, generating $33.3 million in revenues, up 83% on a year-over-year basis. Notably, international business represented 18% of total revenues in the third quarter.
Research and development (R&D) expenses totaled $43.3 million in the quarter, contracting 1.4% from $43.9 million a year ago.
Selling, general and administrative expenses totaled $84.2 million in the reported quarter, increasing 11.2% from $75.7 million in the prior-year quarter.
Financial Update
As of Sep 30, DexCom had $525.8 million in cash, cash equivalents and short-term marketable securities versus $496.6 million at the end of the second quarter of 2017.
Guidance
The company expects global revenues to come in at the low end of its previously issued guidance of $710 million to $740 million. For the full year, DexCom reaffirmed the low end of the 67% to 70% gross margin guidance.
Zacks Rank & Key Picks
DexCom has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . Notably, PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported earnings per share of 43 cents in the second quarter of fiscal 2018, up 79.2% from the year-ago quarter’s 24 cents. Also, gross margin expanded 548 bps year over year to 35.2% in the reported quarter.
Luminex reported adjusted earnings per share of 19 cents in the third quarter of 2017, up 216.7% year over year. The company’s revenues in the quarter increased almost 4.1% year over year to $74.1 million.
Intuitive Surgical posted adjusted earnings of $2.77 per share in the third quarter of 2017, up 34.5% year over year. Also, revenues increased 18% year over year to $806.1 million.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>