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DexCom Q3 Earnings Beat Estimates on Sensor Growth, Stock Rises
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DexCom, Inc. (DXCM - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate of 43 cents by 4.7%. The company had reported earnings of 50 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 34 cents, up from the year-ago quarter’s figure of 29 cents.
Revenue Details of Dexcom
Total revenues grew 2% (3% on an organic basis) to $994.2 billion year over year, beating the Zacks Consensus Estimate by 0.3%. The revenue growth was driven by strong new patient performance and the expanded availability of its G7 and DexCom ONE+ product platforms.
Following the earnings release, shares of DXCM rose 3.3% to $74.85 at yesterday’s close.
The stock has declined 39.7% year to date against 6.5% growth of the industry. The broader S&P 500 index has moved up 21.6% in the same period.
Image Source: Zacks Investment Research
Segmental Details Of DXCM
Sensor and other revenues (96% of total revenues) increased 9% on a year-over-year basis to $951.8 million. Hardware revenues (4%) decreased 58% year over year to $42.4 million.
Dexcom Revenues by Geography
U.S. revenues (71% of total revenues) decreased 2% on a year-over-year basis to $701.9 million. International revenues (29%) improved 12% (16% on an organic basis) year over year to $292.3 million.
Margin Analysis of DXCM
Adjusted gross profit totaled $625.9 million, down 0.7% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 63%, up 25 basis points year over year.
Research and development expenses were $135.4 million, up 3% year over year. Selling, general, and administrative expenses totaled $306.4 million, up 7% year over year.
The company reported total operating expenses of $441.8 million, up 5.7% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 21.3%, down 320 basis points year over year.
Financial Position of Dexcom
DXCM exited the third quarter with $2.49 billion in cash, cash equivalents, and marketable securities compared with $3.12 billion in the second quarter.
Total assets amounted to $6.35 billion, down sequentially from $6.79 billion.
2024 Guidance for DXCM
DexCom reiterated its outlook for 2024 revenues.
The company expects revenues in the range of $4.00-4.05 billion, implying 11-13% year-over-year organic growth. The Zacks Consensus Estimate for the same is pegged at $4.02 billion.
DXCM expects adjusted gross margin to be 63%. Adjusted operating margin is projected to be 20%.
Wrapping Up
DexCom concluded the third quarter of 2024 on a positive note, with earnings and revenues surpassing expectations. Key drivers included significant contributions from the Sensor segment and robust domestic and international revenue growth. The expansion of coverage for CGM systems during the quarter further supported growth, a trend expected to continue throughout 2024. The introduction of sensors like G6 and G7 in international markets also fueled revenue growth.
Dexcom anticipates strong growth from its recent product launches and international expansions, particularly with the debut of the Stelo biosensor in the United States.
Additionally, the launch of the G7 and DexCom ONE+ in key markets, including Australia and France, along with accelerated patient uptake, supports Dexcom’s growth trajectory globally.
Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average being 47.5%.
AVAH’s shares have gained 90.7% compared with the industry's 17.9% growth year to date.
Quest Diagnostics has an estimated long-term growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.4%.
Quest Diagnostics shares have rallied 14.7% compared with the industry's 16.8% growth year to date.
RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.
RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.
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DexCom Q3 Earnings Beat Estimates on Sensor Growth, Stock Rises
DexCom, Inc. (DXCM - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate of 43 cents by 4.7%. The company had reported earnings of 50 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 34 cents, up from the year-ago quarter’s figure of 29 cents.
Revenue Details of Dexcom
Total revenues grew 2% (3% on an organic basis) to $994.2 billion year over year, beating the Zacks Consensus Estimate by 0.3%. The revenue growth was driven by strong new patient performance and the expanded availability of its G7 and DexCom ONE+ product platforms.
Following the earnings release, shares of DXCM rose 3.3% to $74.85 at yesterday’s close.
The stock has declined 39.7% year to date against 6.5% growth of the industry. The broader S&P 500 index has moved up 21.6% in the same period.
Image Source: Zacks Investment Research
Segmental Details Of DXCM
Sensor and other revenues (96% of total revenues) increased 9% on a year-over-year basis to $951.8 million. Hardware revenues (4%) decreased 58% year over year to $42.4 million.
Dexcom Revenues by Geography
U.S. revenues (71% of total revenues) decreased 2% on a year-over-year basis to $701.9 million. International revenues (29%) improved 12% (16% on an organic basis) year over year to $292.3 million.
Margin Analysis of DXCM
Adjusted gross profit totaled $625.9 million, down 0.7% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 63%, up 25 basis points year over year.
Research and development expenses were $135.4 million, up 3% year over year. Selling, general, and administrative expenses totaled $306.4 million, up 7% year over year.
The company reported total operating expenses of $441.8 million, up 5.7% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 21.3%, down 320 basis points year over year.
Financial Position of Dexcom
DXCM exited the third quarter with $2.49 billion in cash, cash equivalents, and marketable securities compared with $3.12 billion in the second quarter.
Total assets amounted to $6.35 billion, down sequentially from $6.79 billion.
2024 Guidance for DXCM
DexCom reiterated its outlook for 2024 revenues.
The company expects revenues in the range of $4.00-4.05 billion, implying 11-13% year-over-year organic growth. The Zacks Consensus Estimate for the same is pegged at $4.02 billion.
DXCM expects adjusted gross margin to be 63%. Adjusted operating margin is projected to be 20%.
Wrapping Up
DexCom concluded the third quarter of 2024 on a positive note, with earnings and revenues surpassing expectations. Key drivers included significant contributions from the Sensor segment and robust domestic and international revenue growth. The expansion of coverage for CGM systems during the quarter further supported growth, a trend expected to continue throughout 2024. The introduction of sensors like G6 and G7 in international markets also fueled revenue growth.
Dexcom anticipates strong growth from its recent product launches and international expansions, particularly with the debut of the Stelo biosensor in the United States.
Additionally, the launch of the G7 and DexCom ONE+ in key markets, including Australia and France, along with accelerated patient uptake, supports Dexcom’s growth trajectory globally.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, Dexcom carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Aveanna Healthcare (AVAH - Free Report) , Quest Diagnostics (DGX - Free Report) and RadNet (RDNT - Free Report) . While Aveanna Healthcare carries a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average being 47.5%.
AVAH’s shares have gained 90.7% compared with the industry's 17.9% growth year to date.
Quest Diagnostics has an estimated long-term growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.4%.
Quest Diagnostics shares have rallied 14.7% compared with the industry's 16.8% growth year to date.
RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.
RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.