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:
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 >>
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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:
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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