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DexCom (DXCM) to Report Q4 Earnings: What's in the Cards?
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DexCom, Inc. (DXCM - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 10, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 43.6%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the average surprise being 31.7%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $696.7 million, suggesting growth of 22.5% from the year-ago reported figure. The consensus mark for earnings stands at 86 cents per share, indicating a decline of 5.5% from the prior-year quarter.
Factors to Note
DexCom’s fourth-quarter top line is likely to reflect an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”). In fact, per the preliminary announcement, DexCom — the leader in CGM — anticipates fourth-quarter 2021 revenues to be around $698 million (up 23% from the year-ago quarter).
Per the third-quarter 2021 earnings call, the company continues to progress with its G7 scale-up and regulatory efforts and is on track to commence the launch of the system on receiving CE mark clearance. The company has managed to make substantial progress related to preparation for the regulatory submission in the United States.
During the third quarter, the company launched Dexcom ONE, which is an important addition to its portfolio as DexCom continues to focus on widening access to healthcare for people with diabetes worldwide.
Per the third quarter of 2021 earnings release, the company completed the buyouts of its distributor in Australia and New Zealand, thereby advancing its strategy to transfer certain international markets from distributors to direct sales.
During the same period, the company announced that its G6 CGM System is now covered by the Non-Insured Health Benefits (“NIHB”) program for diabetics aged between two and 19 requiring intensive insulin therapy. The expanded coverage is expected to provide a wider pool of First Nations, and Inuit children and adolescents access to the system, thereby potentially enabling them to better manage the life-long chronic illness.
In September 2021, Dexcom announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 CGM System via Manitoba Health and Seniors Care. In the same month, the company announced that its G6 CGM System is now covered by the NIHB program for diabetics aged between two and 19 requiring intensive insulin therapy.
These developments may have positively impacted the company’s performance in the to-be-reported quarter.
DexCom has ample prospects in international markets backed by demographic trends and lifestyle in countries outside the United States and Europe. Per the company, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.
In third-quarter 2021, international revenues (25% of total revenues) surged 57% year over year to $160.6 million. The momentum is likely to have continued in the fourth quarter, thanks to broad-based growth throughout all markets.
However, an increase in operating expenses and intense competition may have weighed on the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a 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 not the case here as you will see.
Earnings ESP: DexCom has an Earnings ESP of +1.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Laboratory Corporation of America Holdings (LH - Free Report) , also popularly known as LabCorp, has an Earnings ESP of +9.21% and a Zacks Rank of 3.
LabCorp’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 6.8% compares favorably with the industry’s 4.3%.
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DexCom (DXCM) to Report Q4 Earnings: What's in the Cards?
DexCom, Inc. (DXCM - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 10, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 43.6%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the average surprise being 31.7%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $696.7 million, suggesting growth of 22.5% from the year-ago reported figure. The consensus mark for earnings stands at 86 cents per share, indicating a decline of 5.5% from the prior-year quarter.
Factors to Note
DexCom’s fourth-quarter top line is likely to reflect an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”). In fact, per the preliminary announcement, DexCom — the leader in CGM — anticipates fourth-quarter 2021 revenues to be around $698 million (up 23% from the year-ago quarter).
Per the third-quarter 2021 earnings call, the company continues to progress with its G7 scale-up and regulatory efforts and is on track to commence the launch of the system on receiving CE mark clearance. The company has managed to make substantial progress related to preparation for the regulatory submission in the United States.
During the third quarter, the company launched Dexcom ONE, which is an important addition to its portfolio as DexCom continues to focus on widening access to healthcare for people with diabetes worldwide.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
Per the third quarter of 2021 earnings release, the company completed the buyouts of its distributor in Australia and New Zealand, thereby advancing its strategy to transfer certain international markets from distributors to direct sales.
During the same period, the company announced that its G6 CGM System is now covered by the Non-Insured Health Benefits (“NIHB”) program for diabetics aged between two and 19 requiring intensive insulin therapy. The expanded coverage is expected to provide a wider pool of First Nations, and Inuit children and adolescents access to the system, thereby potentially enabling them to better manage the life-long chronic illness.
In September 2021, Dexcom announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 CGM System via Manitoba Health and Seniors Care. In the same month, the company announced that its G6 CGM System is now covered by the NIHB program for diabetics aged between two and 19 requiring intensive insulin therapy.
These developments may have positively impacted the company’s performance in the to-be-reported quarter.
DexCom has ample prospects in international markets backed by demographic trends and lifestyle in countries outside the United States and Europe. Per the company, international growth remains strong and presents lucrative opportunities, courtesy of improving global access and awareness.
In third-quarter 2021, international revenues (25% of total revenues) surged 57% year over year to $160.6 million. The momentum is likely to have continued in the fourth quarter, thanks to broad-based growth throughout all markets.
However, an increase in operating expenses and intense competition may have weighed on the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a 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 not the case here as you will see.
Earnings ESP: DexCom has an Earnings ESP of +1.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Laboratory Corporation of America Holdings (LH - Free Report) , also popularly known as LabCorp, has an Earnings ESP of +9.21% and a Zacks Rank of 3.
LabCorp’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 6.8% compares favorably with the industry’s 4.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.