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DexCom (DXCM) to Report Q3 Earnings: What's in the Cards?
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DexCom, Inc. (DXCM - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 76.7%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $612.5 million, suggesting growth of 22.3% from the year-ago reported figure. The consensus mark for earnings stands at 62 cents per share, indicating a decline of 34% from the prior-year quarter.
Factors to Note
DexCom’s third-quarter top line is likely to reflect an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”).
In September 2021, Dexcom announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 CGM System via Manitoba Health and Seniors Care. In the same month, the company announced that its G6 CGM System is now covered by the Non-Insured Health Benefits (“NIHB”) program for diabetics aged between two and 19 requiring intensive insulin therapy.
In July, DexCom announced the receipt of the FDA’s clearance for Dexcom Partner Web APIs. The latest nod will enable approved third-party developers to integrate real-time CGM data into their digital health apps and devices.
In June, it announced that the Dexcom G6 CGM System might now be eligible for provincial coverage in British Columbia, Canada through BC PharmaCare.
These developments may have positively impacted the company’s performance in the to-be-reported quarter.
DexCom has ample prospects in international markets backed by demographic trends and lifestyle in countries outside the United States and Europe. Per the company, international growth remains strong and presents lucrative opportunities driven by improving global access and awareness.
In second-quarter 2021, international revenues (22% of total revenues) surged 58% year over year to $133.6 million. The momentum is likely to have continued in the third quarter, thanks to broad-based growth throughout all markets.
Improved operational discipline might have favored the third-quarter operating margin.
However, increase in operating expenses and intense competition may have weighed on the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a 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. This is the case here as you will see.
Earnings ESP: DexCom has an Earnings ESP of +5.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
DexCom (DXCM) to Report Q3 Earnings: What's in the Cards?
DexCom, Inc. (DXCM - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 76.7%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $612.5 million, suggesting growth of 22.3% from the year-ago reported figure. The consensus mark for earnings stands at 62 cents per share, indicating a decline of 34% from the prior-year quarter.
Factors to Note
DexCom’s third-quarter top line is likely to reflect an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”).
In September 2021, Dexcom announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 CGM System via Manitoba Health and Seniors Care. In the same month, the company announced that its G6 CGM System is now covered by the Non-Insured Health Benefits (“NIHB”) program for diabetics aged between two and 19 requiring intensive insulin therapy.
In July, DexCom announced the receipt of the FDA’s clearance for Dexcom Partner Web APIs. The latest nod will enable approved third-party developers to integrate real-time CGM data into their digital health apps and devices.
In June, it announced that the Dexcom G6 CGM System might now be eligible for provincial coverage in British Columbia, Canada through BC PharmaCare.
These developments may have positively impacted the company’s performance in the to-be-reported quarter.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
DexCom has ample prospects in international markets backed by demographic trends and lifestyle in countries outside the United States and Europe. Per the company, international growth remains strong and presents lucrative opportunities driven by improving global access and awareness.
In second-quarter 2021, international revenues (22% of total revenues) surged 58% year over year to $133.6 million. The momentum is likely to have continued in the third quarter, thanks to broad-based growth throughout all markets.
Improved operational discipline might have favored the third-quarter operating margin.
However, increase in operating expenses and intense competition may have weighed on the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a 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. This is the case here as you will see.
Earnings ESP: DexCom has an Earnings ESP of +5.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Insulet Corporation (PODD - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +26.83% and a Zacks Rank of 3.
Cardiovascular Systems, Inc. has an Earnings ESP of +24.59% and a Zacks Rank of 3.