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DexCom (DXCM) to Report Q4 Earnings: Is a Beat in Store?
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DexCom, Inc. (DXCM - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 8, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 47.06%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 36.43%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for DexCom’s fourth-quarter revenues is pegged at $1.03 billion, indicating growth of 26.4% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 43 cents per share, implying a 26.5% improvement year over year.
Factors to Note
DexCom’s revenues in the to-be-reported quarter are likely to have been aided by the 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. Per the preliminary report, fourth-quarter 2023 net sales are estimated to be at least $1.03 billion, up 26% year over year.
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 fourth-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.
Per management, DXCM 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, the company launched its latest sensors, G7, in more than 15 countries during 2023, which resulted in additional revenues.
DexCom 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 third quarter, International revenues (27% of total revenues) surged 33% year over year to $261.4 million. Organically, the segment’s revenues were up 30% in the last reported quarter. U.S. revenues (73% of total revenues) increased 24% in the same period. The trend is likely to have continued in the fourth quarter, owing to broad-based growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $738 million and $269 million, respectively, for the fourth quarter.
However, an increase in operating expenses and intense competition might have weighed on DXCM’s performance in the quarter under review.
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 +5.22%. 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 a few medical stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.
The stock fell 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has risen 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock fell 22.3% in the past year. AMN’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
Image: Shutterstock
DexCom (DXCM) to Report Q4 Earnings: Is a Beat in Store?
DexCom, Inc. (DXCM - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 8, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 47.06%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 36.43%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for DexCom’s fourth-quarter revenues is pegged at $1.03 billion, indicating growth of 26.4% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 43 cents per share, implying a 26.5% improvement year over year.
Factors to Note
DexCom’s revenues in the to-be-reported quarter are likely to have been aided by the 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. Per the preliminary report, fourth-quarter 2023 net sales are estimated to be at least $1.03 billion, up 26% year over year.
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 fourth-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.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
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.
Per management, DXCM 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, the company launched its latest sensors, G7, in more than 15 countries during 2023, which resulted in additional revenues.
DexCom 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 third quarter, International revenues (27% of total revenues) surged 33% year over year to $261.4 million. Organically, the segment’s revenues were up 30% in the last reported quarter. U.S. revenues (73% of total revenues) increased 24% in the same period. The trend is likely to have continued in the fourth quarter, owing to broad-based growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $738 million and $269 million, respectively, for the fourth quarter.
However, an increase in operating expenses and intense competition might have weighed on DXCM’s performance in the quarter under review.
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 +5.22%. 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 a few medical stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock fell 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.
The stock has risen 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
AMN Healthcare Services (AMN - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.
The stock fell 22.3% in the past year. AMN’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.