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DexCom (DXCM) Preliminary Q4 Revenues Ride on Sensor Demand
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DexCom, Inc. (DXCM - Free Report) recently announced preliminary revenue results for fourth-quarter 2023. The preliminary results drove up the company’s shares by 4.6% in the trading session on Jan 8.
Per the preliminary report, fourth-quarter 2023 net sales are estimated to be at least $1.03 billion, up 26% year over year. The Zacks Consensus Estimate of $1.0 billion lies below the preliminary figure.
The company recorded sales of approximately $765 million in the United States, implying growth of 26% year over year. International revenues are estimated to have increased 27% to $265 million.
For full-year 2023, DXCM estimated revenues to be $3.65 billion, indicating an increase of 24% year over year. The Zacks Consensus Estimate of $3.59 billion lies below the preliminary figure.
Per management, the company achieved the largest expansion of coverage for its sensors in 2023. The expanded coverage made its sensors more accessible to patients, thereby driving revenues. Moreover, DXCM launched its latest sensors, G7, in more than 15 countries during 2023, which resulted in additional revenues.
DexCom announced that it has submitted its new glucose sensor, Stelo, to the FDA for review during the fourth quarter. The new sensor is designed specifically for people with type II diabetes who do not use insulin. The company expects to launch the sensor in the U.S. market during the summer of 2024. This is the first sensor from DXCM targeting type II diabetes and is likely to be a key growth driver for the company in 2024.
DexComhas provided its full-year 2024 revenue guidance.
Total revenues are expected to be in the range of $4.15-$4.35 billion, implying organic growth of 16-21% year over year. The Zacks Consensus Estimate is pegged at $4.31 billion.
A Brief Q4 Analysis
On the third-quarter earnings call in November 2023, management confirmed that impressive contributions from the Sensor segment, and domestic and international revenue growth were the key catalysts. Moreover, the expansion of coverage for CGM systems during the quarter supported growth. This trend is likely to have continued in the fourth quarter.
Apart from making continued advancements in terms of its key strategic objectives, the company continued to have strong new patient additions in the quarter, a trend likely to have been seen in the fourth quarter as well.
Price Performance
Shares of the company rose 33% between Oct 1 and Dec 31, 2023, compared with the industry’s 10.2% growth. The S&P 500 gained 10.9% during the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, DexCom carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 22.1% compared with the industry’s 23.9% growth between Oct 1 and Dec 31, 2023.
Merit Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.4%.
Merit Medical’s shares have risen 10.5% compared with the industry’s 7.2% growth between Oct 1 and Dec 31, 2023.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 26.3% compared with the industry’s 10.1% growth between Oct 1 and Dec 31, 2023.
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DexCom (DXCM) Preliminary Q4 Revenues Ride on Sensor Demand
DexCom, Inc. (DXCM - Free Report) recently announced preliminary revenue results for fourth-quarter 2023. The preliminary results drove up the company’s shares by 4.6% in the trading session on Jan 8.
The company is scheduled to release fourth-quarter results on Feb 8.
Per the preliminary report, fourth-quarter 2023 net sales are estimated to be at least $1.03 billion, up 26% year over year. The Zacks Consensus Estimate of $1.0 billion lies below the preliminary figure.
The company recorded sales of approximately $765 million in the United States, implying growth of 26% year over year. International revenues are estimated to have increased 27% to $265 million.
For full-year 2023, DXCM estimated revenues to be $3.65 billion, indicating an increase of 24% year over year. The Zacks Consensus Estimate of $3.59 billion lies below the preliminary figure.
Per management, the company achieved the largest expansion of coverage for its sensors in 2023. The expanded coverage made its sensors more accessible to patients, thereby driving revenues. Moreover, DXCM launched its latest sensors, G7, in more than 15 countries during 2023, which resulted in additional revenues.
DexCom announced that it has submitted its new glucose sensor, Stelo, to the FDA for review during the fourth quarter. The new sensor is designed specifically for people with type II diabetes who do not use insulin. The company expects to launch the sensor in the U.S. market during the summer of 2024. This is the first sensor from DXCM targeting type II diabetes and is likely to be a key growth driver for the company in 2024.
DexCom, Inc. Price
DexCom, Inc. price | DexCom, Inc. Quote
Guidance
DexComhas provided its full-year 2024 revenue guidance.
Total revenues are expected to be in the range of $4.15-$4.35 billion, implying organic growth of 16-21% year over year. The Zacks Consensus Estimate is pegged at $4.31 billion.
A Brief Q4 Analysis
On the third-quarter earnings call in November 2023, management confirmed that impressive contributions from the Sensor segment, and domestic and international revenue growth were the key catalysts. Moreover, the expansion of coverage for CGM systems during the quarter supported growth. This trend is likely to have continued in the fourth quarter.
Apart from making continued advancements in terms of its key strategic objectives, the company continued to have strong new patient additions in the quarter, a trend likely to have been seen in the fourth quarter as well.
Price Performance
Shares of the company rose 33% between Oct 1 and Dec 31, 2023, compared with the industry’s 10.2% growth. The S&P 500 gained 10.9% during the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, DexCom carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 22.1% compared with the industry’s 23.9% growth between Oct 1 and Dec 31, 2023.
Merit Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.4%.
Merit Medical’s shares have risen 10.5% compared with the industry’s 7.2% growth between Oct 1 and Dec 31, 2023.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 26.3% compared with the industry’s 10.1% growth between Oct 1 and Dec 31, 2023.