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Is a Beat Likely for DexCom (DXCM) This Earnings Season?
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DexCom, Inc. (DXCM - Free Report) is scheduled to release second-quarter 2022 results on Jul 28, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 36.00%. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, the average surprise being 15.84%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $697.01 million, suggesting growth of 17.1% from the year-ago reported figure. The consensus mark for earnings stands at 16 cents per share, indicating a decline of 15.8% from the prior-year quarter.
Factors to Note
DexCom’s second-quarter top line is likely to have been aided by 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 first quarter, 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. The company launched differentiated software with the CE Mark and Dexcom ONE product in the second half of 2022. DexCom is likely to have launched Dexcom ONE product in the United Kingdom and Spain during the second quarter. These developments are likely to have benefited customer growth during the soon-to-be-reported quarter.
In March 2022, the company received the FDA’s Breakthrough Device Designation for the Dexcom CGM system’s use in the hospital setting. During the first quarter, DexCom secured the CE mark for the Dexcom G7 CGM System for monitoring people with diabetes aged two years and older and also initiated a limited launch of the system in Europe. DexCom expanded coverage for Dexcom CGM to include type 1 diabetes in Ontario, Canada during the first quarter. Moreover, TRICARE added Dexcom G6 as a brand-name formulary pharmacy benefit.
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 first-quarter 2022, international revenues (28.2% of total revenues) surged 43% year over year to $177.6 million. The momentum is likely to have continued in the second 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.
Earnings Beat Likely
Our proven model predicts an earnings beat for DexCom this time around. The 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (17 cents per share) and the Zacks Consensus Estimate (16 cents per share), is +9.15%.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Cano Health has an Earnings ESP of +53.85% and a Zacks Rank of 2 at present. CANO has an earnings yield of (0.77%), which compares favorably with the industry’s yield of (1.42%).
In the last reported quarter, Cano Health delivered an earnings surprise of 30.00%.
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Is a Beat Likely for DexCom (DXCM) This Earnings Season?
DexCom, Inc. (DXCM - Free Report) is scheduled to release second-quarter 2022 results on Jul 28, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 36.00%. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, the average surprise being 15.84%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $697.01 million, suggesting growth of 17.1% from the year-ago reported figure. The consensus mark for earnings stands at 16 cents per share, indicating a decline of 15.8% from the prior-year quarter.
Factors to Note
DexCom’s second-quarter top line is likely to have been aided by 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 first quarter, 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. The company launched differentiated software with the CE Mark and Dexcom ONE product in the second half of 2022. DexCom is likely to have launched Dexcom ONE product in the United Kingdom and Spain during the second quarter. These developments are likely to have benefited customer growth during the soon-to-be-reported quarter.
DexCom, Inc. Price and Consensus
DexCom, Inc. price-consensus-chart | DexCom, Inc. Quote
In March 2022, the company received the FDA’s Breakthrough Device Designation for the Dexcom CGM system’s use in the hospital setting. During the first quarter, DexCom secured the CE mark for the Dexcom G7 CGM System for monitoring people with diabetes aged two years and older and also initiated a limited launch of the system in Europe. DexCom expanded coverage for Dexcom CGM to include type 1 diabetes in Ontario, Canada during the first quarter. Moreover, TRICARE added Dexcom G6 as a brand-name formulary pharmacy benefit.
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 first-quarter 2022, international revenues (28.2% of total revenues) surged 43% year over year to $177.6 million. The momentum is likely to have continued in the second 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.
Earnings Beat Likely
Our proven model predicts an earnings beat for DexCom this time around. The 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (17 cents per share) and the Zacks Consensus Estimate (16 cents per share), is +9.15%.
Zacks Rank: DexCom carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank of 1. ALKS has an estimated long-term growth rate of 25.1%.
Alkermes’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 350.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Cano Health has an Earnings ESP of +53.85% and a Zacks Rank of 2 at present. CANO has an earnings yield of (0.77%), which compares favorably with the industry’s yield of (1.42%).
In the last reported quarter, Cano Health delivered an earnings surprise of 30.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.