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DexCom (DXCM) Incurs Wider Loss in Q3, Beats on Revenue

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DexCom Inc. (DXCM - Free Report) reported loss of 22 cents per share in the third quarter of 2016, much wider than the Zacks Consensus Estimate of a loss of 14 cents. DexCom had reported a loss of 7 cents in the year-ago quarter.
Revenues surged 4.1% year over year to $148.6 million, beating the Zacks Consensus Estimate of $147.0 million.


Operational Details

In the reported quarter, cost of sales increased to $47.5 compared to $30.5 million for the same quarter in 2015. This was primarily due to an increase in sales volume.

Research and development expense decreased by $20.9 million from the year-ago quarter to $43.9 million. The decrease in research and development expense was primarily due to the absence of a non-cash charge related to Verily Collaboration Agreement incurred during the third quarter of 2015. This was partially offset by additional payroll costs and additional non-cash share-based compensation during the third quarter of 2016.

Selling, general and administrative expense increased by $23.4 million from the third quarter of 2015 to $75.7 million. The increase primarily was due to additional payroll, marketing cum consulting costs, and non-cash share-based compensation.

In the reported quarter, gross profit totaled $101.1 million compared with $74.7 million in the comparable quarter of 2015. GAAP net loss was $18.8 million for the third quarter of 2016 compared with GAAP net loss of $42.5 million in the year-ago quarter.

Financial Condition

As of Sep 30, 2016, DexCom had $127.3 million in cash, cash equivalents and short-term marketable securities versus $115.2 million as of Dec 31, 2015.

DEXCOM INC Price, Consensus and EPS Surprise


DEXCOM INC Price, Consensus and EPS Surprise | DEXCOM INC Quote

Zacks Rank & Key Picks

DexCom currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader medical space include Anika Therapeutics Inc. ANIK, Cambrex Corporation CBM and IDEXX Laboratories, Inc. IDXX.

Notably, all the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Anika Therapeutics represents a strong long-term expected growth rate of 15.00%. Notably, the company has a positive one-year return of almost 3%.

Cambrex Corporation has a positive one-year return of 4.8%. The company also has a promising long-term expected growth rate of 15.00%.

IDEXX Laboratories represents a promising one-year return of 56.4%. The company has a long-term expected growth rate of almost 14.96%.

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