DexCom, Inc. (DXCM - Free Report) is likely to gain from solid third-quarter 2019 results and a raised view.
Shares of this company have rallied 89.6% compared with the industry’s 17.8% rise in a year’s time. The current level also compares favorably with the S&P 500 index’s 15.7% gain over the same time frame.
This $19.44-billion medical device company currently has a Zacks Rank #2 (Buy). DexCom’s earnings are expected to grow 31.48% in the fourth quarter. Also, the company has a trailing four-quarter positive earnings surprise of 189.7%, on average.
The stock also has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.
Let’s take a closer look at the factors that are working in favor of the company right now.
Q3 Results & Guidance
In the recently-reported third quarter, DexCom reported adjusted earnings per share (EPS) of 65 cents, surpassing the Zacks Consensus Estimate of 18 cents by a huge mark. Moreover, the bottom line skyrocketed 261.1% from the prior-year quarter.
Total revenues surged 48.6% to $396.3 million on a year-over-year basis and also surpassed the Zacks Consensus Estimate by 13.5%.
Per management, rising volumes across all channels, strong new patient additions and increasing global awareness of the benefits of real-time CGM contributed to the upside.
Geographically, U.S. revenues shot up 52.6% on a year-over-year basis to $308.8 million, while international revenues improved 36.1% year over year to $87.5 million.
Reflective of this, DexCom issued a solid guidance for 2019.
Notably, revenues are expected in the range of $1.43-$1.45 billion, up from the previously guided range of $1.33-$1.38 billion. Gross profit margin is projected at around 63% compared with the prior estimated range of 64% to 65% of net revenues.
Adjusted operating margin is projected to be about 9% of net revenues versus the previous projection of 7%. Adjusted EBITDA margin is anticipated at 19.5%, compared with the prior estimate of 18.5%.
Which Way Are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $1.45 billion, indicating an improvement of 40.1% from the year-ago quarter’s reported figure. For adjusted EPS, the same stands at $1.42 per share, suggesting a massive upside of 373.3% from the year-ago reported figure.
Other Stocks to Consider
Other top-ranked stocks from the broader medical space are CONMED Corporation (CNMD - Free Report) , HealthEquity (HQY - Free Report) and West Pharmaceutical Services (WST - Free Report) . While CONMED and West Pharmaceutical currently carry a Zacks Rank #2, HealthEquity sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conmed has a long-term earnings growth rate of 17%.
HealthEquity has a long-term earnings growth rate of 25%.
West Pharmaceuticals has a long-term earnings growth rate of 14%.
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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.
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DexCom, Inc. (DXCM - Free Report) is likely to gain from solid third-quarter 2019 results and a raised view.
Shares of this company have rallied 89.6% compared with the industry’s 17.8% rise in a year’s time. The current level also compares favorably with the S&P 500 index’s 15.7% gain over the same time frame.
This $19.44-billion medical device company currently has a Zacks Rank #2 (Buy). DexCom’s earnings are expected to grow 31.48% in the fourth quarter. Also, the company has a trailing four-quarter positive earnings surprise of 189.7%, on average.
The stock also has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.
Let’s take a closer look at the factors that are working in favor of the company right now.
Q3 Results & Guidance
In the recently-reported third quarter, DexCom reported adjusted earnings per share (EPS) of 65 cents, surpassing the Zacks Consensus Estimate of 18 cents by a huge mark. Moreover, the bottom line skyrocketed 261.1% from the prior-year quarter.
Total revenues surged 48.6% to $396.3 million on a year-over-year basis and also surpassed the Zacks Consensus Estimate by 13.5%.
Per management, rising volumes across all channels, strong new patient additions and increasing global awareness of the benefits of real-time CGM contributed to the upside.
Geographically, U.S. revenues shot up 52.6% on a year-over-year basis to $308.8 million, while international revenues improved 36.1% year over year to $87.5 million.
Reflective of this, DexCom issued a solid guidance for 2019.
Notably, revenues are expected in the range of $1.43-$1.45 billion, up from the previously guided range of $1.33-$1.38 billion. Gross profit margin is projected at around 63% compared with the prior estimated range of 64% to 65% of net revenues.
Adjusted operating margin is projected to be about 9% of net revenues versus the previous projection of 7%. Adjusted EBITDA margin is anticipated at 19.5%, compared with the prior estimate of 18.5%.
Which Way Are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $1.45 billion, indicating an improvement of 40.1% from the year-ago quarter’s reported figure. For adjusted EPS, the same stands at $1.42 per share, suggesting a massive upside of 373.3% from the year-ago reported figure.
Other Stocks to Consider
Other top-ranked stocks from the broader medical space are CONMED Corporation (CNMD - Free Report) , HealthEquity (HQY - Free Report) and West Pharmaceutical Services (WST - Free Report) . While CONMED and West Pharmaceutical currently carry a Zacks Rank #2, HealthEquity sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conmed has a long-term earnings growth rate of 17%.
HealthEquity has a long-term earnings growth rate of 25%.
West Pharmaceuticals has a long-term earnings growth rate of 14%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See 7 handpicked stocks now >>
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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