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DexCom (DXCM) to Report Q3 Earnings: Is a Beat in Store?
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DexCom, Inc. (DXCM - Free Report) is scheduled to release third-quarter 2023 results on Oct 25, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 54.55%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 28.83%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for DexCom’s third-quarter revenues is pegged at $937.31 million, indicating growth of 21.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 34 cents per share, implying a 21.4% improvement year over year.
Factors to Note
DexCom’s revenues in the to-be-reported quarter are likely to have been aided by continued increase in volume. This surge can be attributed to new patients across all channels and rising global awareness about the benefits of DXCM’s real-time Continuous Glucose Monitoring (CGM) system.
Potential robust contributions from the Sensor segment, and domestic and international revenue growth are likely to have been the key catalysts behind the company’s third-quarter performance.
In July, DexCom received approval for the use of its G7 sensor in Canada.
In April, the company announced that the coverage for its CGM systems was expanded through the Non-Insured Health Benefits program. The expanded coverage will provide access to CGM systems for all patients managing diabetes with insulin.
The Medicare coverage for the company’s latest CGM technology, G7 sensor, also got expanded in the same month to include diabetic patients using all types of insulin, as well as certain non-insulin-using individuals with a history of problematic hypoglycemic events.
These developments might have boosted the demand for DXCM’s CGM systems. This, in turn, is likely to have driven revenue growth in the to-be-reported quarter.
The company has been benefiting from demographic trends and lifestyles in countries outside Europe and the United States. Per management, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.
In the second quarter, International revenues (29% of total revenues) surged 38% year over year to $254.7 million. Organically, the segment’s revenues were up 40% in the last reported quarter. U.S. revenues (71% of total revenues) increased 21% in the same period. The trend is likely to have continued in the third quarter, owing to broad-based growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $683 million and $253 million, respectively, for the third quarter.
However, an increase in operating expenses and intense competition might have weighed on DXCM’s performance in the quarter under review.
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. This is the case here, as you will see below.
Earnings ESP: DexCom’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +7.39%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: DexCom carries a Zacks Rank #3 at present.
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 reporting cycle.
The stock has gained 2.5% year to date. XRAY’s earnings beat estimates in the last reported quarter. It has a four-quarter average earnings surprise of 12.51%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 32.5% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank of 3 at present.
The stock has lost 2.8% year to date. COO’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 0.09%.
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DexCom (DXCM) to Report Q3 Earnings: Is a Beat in Store?
DexCom, Inc. (DXCM - Free Report) is scheduled to release third-quarter 2023 results on Oct 25, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 54.55%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 28.83%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for DexCom’s third-quarter revenues is pegged at $937.31 million, indicating growth of 21.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 34 cents per share, implying a 21.4% improvement year over year.
Factors to Note
DexCom’s revenues in the to-be-reported quarter are likely to have been aided by continued increase in volume. This surge can be attributed to new patients across all channels and rising global awareness about the benefits of DXCM’s real-time Continuous Glucose Monitoring (CGM) system.
Potential robust contributions from the Sensor segment, and domestic and international revenue growth are likely to have been the key catalysts behind the company’s third-quarter performance.
In July, DexCom received approval for the use of its G7 sensor in Canada.
In April, the company announced that the coverage for its CGM systems was expanded through the Non-Insured Health Benefits program. The expanded coverage will provide access to CGM systems for all patients managing diabetes with insulin.
The Medicare coverage for the company’s latest CGM technology, G7 sensor, also got expanded in the same month to include diabetic patients using all types of insulin, as well as certain non-insulin-using individuals with a history of problematic hypoglycemic events.
These developments might have boosted the demand for DXCM’s CGM systems. This, in turn, is likely to have driven revenue growth in the to-be-reported quarter.
The company has been benefiting from demographic trends and lifestyles in countries outside Europe and the United States. Per management, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.
In the second quarter, International revenues (29% of total revenues) surged 38% year over year to $254.7 million. Organically, the segment’s revenues were up 40% in the last reported quarter. U.S. revenues (71% of total revenues) increased 21% in the same period. The trend is likely to have continued in the third quarter, owing to broad-based growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $683 million and $253 million, respectively, for the third quarter.
However, an increase in operating expenses and intense competition might have weighed on DXCM’s performance in the quarter under review.
DexCom, Inc. Price and Consensus
DexCom, Inc. price-consensus-chart | DexCom, Inc. Quote
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. This is the case here, as you will see below.
Earnings ESP: DexCom’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +7.39%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: DexCom carries a Zacks Rank #3 at present.
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 reporting cycle.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has gained 2.5% year to date. XRAY’s earnings beat estimates in the last reported quarter. It has a four-quarter average earnings surprise of 12.51%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 32.5% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank of 3 at present.
The stock has lost 2.8% year to date. COO’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 0.09%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.