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DexCom (DXCM) to Report Q1 Earnings: What's in the Cards?

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DexCom, Inc. (DXCM - Free Report) is scheduled to release first-quarter 2022 results on Apr 28, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 20.9%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 26.5%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $619.7 million, suggesting growth of 22.7% from the year-ago reported figure. The consensus mark for earnings stands at 50 cents per share, indicating an improvement of 51.5% from the prior-year quarter.

Factors to Note

DexCom’s first-quarter top line is likely to reflect an increase in volume, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”).

During the fourth quarter of 2021, the company continued to make progress with respect to its objective of expanding access and accelerating its leadership in CGM-connected solutions and customer choice.

Per the fourth-quarter 2021 earnings call, the company strengthened its product portfolio via differentiated software with the CE Mark and the launch of its Dexcom ONE product in the third quarter.

DexCom, Inc. Price and EPS Surprise

DexCom, Inc. Price and EPS Surprise

DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote

Per the third quarter of 2021 earnings release, the company completed the buyouts of its distributors in Australia and New Zealand, thereby advancing its strategy to transfer certain international markets from distributors to direct sales.

In March 2022, the company’s received the FDA’s Breakthrough Device Designation for the Dexcom CGM system’s use in the hospital setting.

These developments may have favored the company’s performance in the to-be-reported quarter.

DexCom has ample prospects in international markets backed by demographic trends and lifestyles in countries outside the United States and Europe. Per the company, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.

In fourth-quarter 2021, international revenues (26% of total revenues) surged 54% year over year to $181.1 million. The momentum is likely to have continued in the first quarter, thanks to broad-based growth throughout all markets.

However, an 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 +9.06%. 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 #3.

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.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Zimmer Biomet's long-term earnings growth rate is estimated at 5.8%. The company's earnings yield of 5.2% compares favorably with the industry's 0.9%.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 5.1% compares favorably with the industry's 0.9%.

Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +0.65% and a Zacks Rank of 3.

Hologic's long-term earnings growth rate is estimated at 12.8%. The company's earnings yield of 6.9% compares favorably with the industry's (7%).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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