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DexCom, Inc. (DXCM - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 68 cents, which missed the Zacks Consensus Estimate of 86 cents by 20.9%. The bottom line declined 25.3% on a year-over-year basis.
For full-year 2021, the company reported an adjusted EPS of $2.66, down 14.2% from the previous year. The figure lagged the consensus mark by 5.3%.
GAAP loss per share in the quarter was 20 cents, against the year-ago quarter’s net income per share of $3.48.
Revenue Details
Total revenues grew 23% to $698.2 million on a year-over-year basis and outpaced the Zacks Consensus Estimate by 0.03%. Rising volumes across all channels, along with strong new customer additions owing to increasing global awareness of the benefits of real-time Continuous Glucose Monitoring (CGM), contributed to the upside.
For full-year 2021, the company reported revenues of $2.45 billion, up 27% on a reported basis and 26% on an organic basis. The figure came in-line with the consensus mark.
Segmental Details
Revenues at the Sensor and other revenues segment (86% of total revenues) climbed 29% on a year-over-year basis to $598.6 million. Hardware revenues (14%) fell 4% year over year to $99.6 million.
Geographical Details
U.S. revenues (74% of total revenues) increased 15% on a year-over-year basis to $517.1 million. International revenues (26%) surged 54% year over year to $181.1 million.
Margin Analysis
Adjusted gross profit in the quarter under review totaled $472.6 million, up 18.4% year over year. DexCom generated an adjusted gross margin (as a percentage of revenues) of 67.7%, which contracted 250 basis points (bps) year over year.
Research and development expenses amounted to $149.8 million in the quarter, up 25.7% year over year. Selling, general and administrative expenses totaled $235.1 million in the reported quarter, up 33.7% year over year.
The company reported total operating expenses of $472 million, up 59.9% year over year.
The company reported an operating income of $0.6 million, compared with the year-ago quarter’s figure of $104 million. Operating margin (as a percentage of revenues) of 0.1% contracted 1820 bps year over year.
Financial Position
The company exited the fourth quarter with $2.73 billion in cash, cash equivalents and marketable securities, compared with $2.70 billion in the preceding quarter.
Total assets in the fourth quarter amounted to $4.86 billion, compared with $4.78 billion on a sequential basis.
2022 Guidance
DexCom has decided to reiterate 2022 guidance for revenues, while issuing guidance for full-year adjusted gross margin and adjusted operating margin.
The company expects revenues to be $2.82-$2.94 billion, reflecting growth of 15-20% from the previous year. The Zacks Consensus Estimate for the same stands at $2.94 billion.
While adjusted gross margin is anticipated to be about 65%, adjusted operating margin is estimated to be around 16%.
Wrapping Up
DexCom exited the fourth quarter on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Impressive contribution from the Sensor segment, and domestic and international revenue growth were key catalysts.
Additionally, the glucose monitoring market presents significant commercial opportunities for the company. DexCom’s prospects in alternative markets such as the non-intensive diabetes management space, the hospital, gestational, pre-diabetes and obesity are likely to provide it a competitive edge in the MedTech space.
Apart from making continued advancements with respect to key strategic objectives, DexCom ended the quarter with new patient additions as well.
Nevertheless, contraction in both gross and operating margins is a woe. Apart from this, cut-throat competition in the market for blood & glucose monitoring devices remains a concern.
Zacks Rank
Currently, DexCom has a Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks that are supposed to report earnings soon are West Pharmaceutical Services, Inc. (WST - Free Report) , Baxter International Inc. (BAX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for West Pharmaceutical’s fourth-quarter 2021 adjusted EPS is currently pegged at $1.92. The consensus estimate for fourth-quarter 2021 revenues stands at $709.1 million. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical has an estimated long-term growth rate of 27.6%. WST’s return on equity stands at 30.4% compared with the industry’s 14.4%.
Baxter currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS is currently pegged at $1.03. The consensus mark for fourth-quarter revenues stands at $3.35 billion.
Baxter has an estimated long-term growth rate of 9.5%. BAX’s earnings yield of 4.9% compares favorably with the industry’s negative yield.
AMN Healthcare currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS currently stands at $2.58. The consensus estimate for its revenues stands at $1.28 billion.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings yield of 6.7% compares favorably with the industry’s 1.1%.
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DexCom (DXCM) Q4 Earnings Miss, Revenues Beat Estimates
DexCom, Inc. (DXCM - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 68 cents, which missed the Zacks Consensus Estimate of 86 cents by 20.9%. The bottom line declined 25.3% on a year-over-year basis.
For full-year 2021, the company reported an adjusted EPS of $2.66, down 14.2% from the previous year. The figure lagged the consensus mark by 5.3%.
GAAP loss per share in the quarter was 20 cents, against the year-ago quarter’s net income per share of $3.48.
Revenue Details
Total revenues grew 23% to $698.2 million on a year-over-year basis and outpaced the Zacks Consensus Estimate by 0.03%. Rising volumes across all channels, along with strong new customer additions owing to increasing global awareness of the benefits of real-time Continuous Glucose Monitoring (CGM), contributed to the upside.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote
For full-year 2021, the company reported revenues of $2.45 billion, up 27% on a reported basis and 26% on an organic basis. The figure came in-line with the consensus mark.
Segmental Details
Revenues at the Sensor and other revenues segment (86% of total revenues) climbed 29% on a year-over-year basis to $598.6 million. Hardware revenues (14%) fell 4% year over year to $99.6 million.
Geographical Details
U.S. revenues (74% of total revenues) increased 15% on a year-over-year basis to $517.1 million. International revenues (26%) surged 54% year over year to $181.1 million.
Margin Analysis
Adjusted gross profit in the quarter under review totaled $472.6 million, up 18.4% year over year. DexCom generated an adjusted gross margin (as a percentage of revenues) of 67.7%, which contracted 250 basis points (bps) year over year.
Research and development expenses amounted to $149.8 million in the quarter, up 25.7% year over year. Selling, general and administrative expenses totaled $235.1 million in the reported quarter, up 33.7% year over year.
The company reported total operating expenses of $472 million, up 59.9% year over year.
The company reported an operating income of $0.6 million, compared with the year-ago quarter’s figure of $104 million. Operating margin (as a percentage of revenues) of 0.1% contracted 1820 bps year over year.
Financial Position
The company exited the fourth quarter with $2.73 billion in cash, cash equivalents and marketable securities, compared with $2.70 billion in the preceding quarter.
Total assets in the fourth quarter amounted to $4.86 billion, compared with $4.78 billion on a sequential basis.
2022 Guidance
DexCom has decided to reiterate 2022 guidance for revenues, while issuing guidance for full-year adjusted gross margin and adjusted operating margin.
The company expects revenues to be $2.82-$2.94 billion, reflecting growth of 15-20% from the previous year. The Zacks Consensus Estimate for the same stands at $2.94 billion.
While adjusted gross margin is anticipated to be about 65%, adjusted operating margin is estimated to be around 16%.
Wrapping Up
DexCom exited the fourth quarter on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Impressive contribution from the Sensor segment, and domestic and international revenue growth were key catalysts.
Additionally, the glucose monitoring market presents significant commercial opportunities for the company. DexCom’s prospects in alternative markets such as the non-intensive diabetes management space, the hospital, gestational, pre-diabetes and obesity are likely to provide it a competitive edge in the MedTech space.
Apart from making continued advancements with respect to key strategic objectives, DexCom ended the quarter with new patient additions as well.
Nevertheless, contraction in both gross and operating margins is a woe. Apart from this, cut-throat competition in the market for blood & glucose monitoring devices remains a concern.
Zacks Rank
Currently, DexCom has a Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks that are supposed to report earnings soon are West Pharmaceutical Services, Inc. (WST - Free Report) , Baxter International Inc. (BAX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
The Zacks Consensus Estimate for West Pharmaceutical’s fourth-quarter 2021 adjusted EPS is currently pegged at $1.92. The consensus estimate for fourth-quarter 2021 revenues stands at $709.1 million. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical has an estimated long-term growth rate of 27.6%. WST’s return on equity stands at 30.4% compared with the industry’s 14.4%.
Baxter currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS is currently pegged at $1.03. The consensus mark for fourth-quarter revenues stands at $3.35 billion.
Baxter has an estimated long-term growth rate of 9.5%. BAX’s earnings yield of 4.9% compares favorably with the industry’s negative yield.
AMN Healthcare currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2021 adjusted EPS currently stands at $2.58. The consensus estimate for its revenues stands at $1.28 billion.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings yield of 6.7% compares favorably with the industry’s 1.1%.