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DexCom (DXCM) Surpasses Earnings & Revenue Estimates in Q4
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DexCom, Inc. (DXCM - Free Report) reported earnings per share (EPS) of 10 cents in the fourth quarter of 2017, beating the Zacks Consensus Estimate by 233.3%. Also, the figure improved from a loss of 9 cents in the year-ago quarter.
Full-year 2017 loss of 58 cents was narrower than the loss of 78 cents in the year-ago quarter. The figure was also better than the Zacks Consensus Estimate of a loss of 63 cents.
Total revenues grew 29.1% to $221 million from $171.2 million in the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $217.8 million.
Full-year 2017 revenues came in at $718.5 million, beating the Zacks Consensus Estimate of $715.3 million. The figure also improved from the year-ago number by 25.3%.
Segmental details
Sensor revenues & other revenues (73% of total revenues) grew 30% on a year-over-year basis to $160.6 million. Transmitter revenues (19%) increased 31% from the prior-year quarter to $42.4 million. Receiver revenues (8%) grew 21% year over year to $18 million.
Operational Details
DexCom generated gross margin (as a percentage of revenues) of 69.5%, an expansion of 129 basis points (bps) year over year.
International business displayed continued growth in the quarter, generating $33.2 million in revenues, up 58% on a year-over-year basis. Notably, international business represented 15% of total revenues in the fourth quarter.
Research and development (R&D) expenses totaled $48.7 million in the quarter, up 11.4% year over year.
Selling, general and administrative expenses totaled $92.8 million in the reported quarter, increasing 17.3% year over year.
Financial Update
Full-year 2017, DexCom had $548.6 million in cash, cash equivalents and short-term marketable securities versus $123.7 million at the end of 2016.
Guidance
DexCom reaffirmed the full-year 2018 guidance. The company expects full-year 2018 revenues in the range of $830-$850 million. Gross profit margin is projected in the band of 65% to 68%. Reported operating expenses, excluding investments in non-intensive programs, is expected to increase 10% from 2017.
Our Take
DexCom exited the fourth quarter on a solid note. The year-over-year growth in revenues and earnings is encouraging. The expansion in gross margin buoys optimism. The company is also focusing on product and innovation through R&D.
Peer Performance
Some medical stocks that reported solid results this earnings season are PetMed Express (PETS - Free Report) , PerkinElmer and Becton, Dickinson and Company (BDX - Free Report) .
PetMed reported third-quarter fiscal 2018 results. Adjusted EPS of 44 cents were up 88.3% from the prior-year quarter. Revenues rose 13.7% to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted EPS of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
Becton, Dickinson reported first-quarter 2018 adjusted EPS of $2.48, up 3.9% at constant currency. Revenues totaled $3.08 billion, up 3.7% at constant currency.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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DexCom (DXCM) Surpasses Earnings & Revenue Estimates in Q4
DexCom, Inc. (DXCM - Free Report) reported earnings per share (EPS) of 10 cents in the fourth quarter of 2017, beating the Zacks Consensus Estimate by 233.3%. Also, the figure improved from a loss of 9 cents in the year-ago quarter.
Full-year 2017 loss of 58 cents was narrower than the loss of 78 cents in the year-ago quarter. The figure was also better than the Zacks Consensus Estimate of a loss of 63 cents.
Total revenues grew 29.1% to $221 million from $171.2 million in the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $217.8 million.
Full-year 2017 revenues came in at $718.5 million, beating the Zacks Consensus Estimate of $715.3 million. The figure also improved from the year-ago number by 25.3%.
Segmental details
Sensor revenues & other revenues (73% of total revenues) grew 30% on a year-over-year basis to $160.6 million. Transmitter revenues (19%) increased 31% from the prior-year quarter to $42.4 million. Receiver revenues (8%) grew 21% year over year to $18 million.
Operational Details
DexCom generated gross margin (as a percentage of revenues) of 69.5%, an expansion of 129 basis points (bps) year over year.
International business displayed continued growth in the quarter, generating $33.2 million in revenues, up 58% on a year-over-year basis. Notably, international business represented 15% of total revenues in the fourth quarter.
Research and development (R&D) expenses totaled $48.7 million in the quarter, up 11.4% year over year.
Selling, general and administrative expenses totaled $92.8 million in the reported quarter, increasing 17.3% year over year.
Financial Update
Full-year 2017, DexCom had $548.6 million in cash, cash equivalents and short-term marketable securities versus $123.7 million at the end of 2016.
Guidance
DexCom reaffirmed the full-year 2018 guidance. The company expects full-year 2018 revenues in the range of $830-$850 million. Gross profit margin is projected in the band of 65% to 68%. Reported operating expenses, excluding investments in non-intensive programs, is expected to increase 10% from 2017.
Our Take
DexCom exited the fourth quarter on a solid note. The year-over-year growth in revenues and earnings is encouraging. The expansion in gross margin buoys optimism. The company is also focusing on product and innovation through R&D.
Peer Performance
Some medical stocks that reported solid results this earnings season are PetMed Express (PETS - Free Report) , PerkinElmer and Becton, Dickinson and Company (BDX - Free Report) .
PetMed reported third-quarter fiscal 2018 results. Adjusted EPS of 44 cents were up 88.3% from the prior-year quarter. Revenues rose 13.7% to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted EPS of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
Becton, Dickinson reported first-quarter 2018 adjusted EPS of $2.48, up 3.9% at constant currency. Revenues totaled $3.08 billion, up 3.7% at constant currency.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>