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CGM Sensor Demand Likely to Drive DexCom (DXCM) Q2 Earnings
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DexCom, Inc. (DXCM - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 18.52%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 34.10%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.04 billion, indicating growth of 19% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 39 cents per share, implying a 14.7% 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 product volume. This surge can be attributed to new patient additions across all channels and rising global awareness about the benefits of DXCM’s real-time Continuous Glucose Monitoring (“CGM”) system.
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 second-quarter performance.
In the first quarter, International revenues (29% of total revenues) surged 24% year over year to $267.8 million. Organically, the segment’s revenues were up 26% in the last reported quarter. U.S. revenues (71% of total revenues) increased 24% in the same period. The trend is likely to have continued in the second quarter, owing to broad-based growth.
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 sensor, G7, in more than 15 countries during 2023, resulting in additional revenues.
The continued expansion of coverage for CGM systems should have supported growth during the quarter. This trend is likely to continue in the rest of 2024. Moreover, the approval of its latest glucose sensor, Stello, for people with type 2 diabetes, earlier this year buoys optimism. Stello is the first device from the company’s portfolio for type 2 diabetes patients.
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. The availability of new sensors, like G6 & G7, in new international markets is also boosting revenue growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $742.7 million and $292.1 million, respectively, for the second quarter.
However, an increase in costs and intense competition might have weighed on DXCM’s performance in the quarter under review.
Per our proven model, 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. That is not the case here, as you will see below.
Earnings ESP: DexCom has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently 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 reporting cycle.
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
Its shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.
Image: Bigstock
CGM Sensor Demand Likely to Drive DexCom (DXCM) Q2 Earnings
DexCom, Inc. (DXCM - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 18.52%.
The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 34.10%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.04 billion, indicating growth of 19% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 39 cents per share, implying a 14.7% 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 product volume. This surge can be attributed to new patient additions across all channels and rising global awareness about the benefits of DXCM’s real-time Continuous Glucose Monitoring (“CGM”) system.
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 second-quarter performance.
In the first quarter, International revenues (29% of total revenues) surged 24% year over year to $267.8 million. Organically, the segment’s revenues were up 26% in the last reported quarter. U.S. revenues (71% of total revenues) increased 24% in the same period. The trend is likely to have continued in the second quarter, owing to broad-based growth.
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 sensor, G7, in more than 15 countries during 2023, resulting in additional revenues.
The continued expansion of coverage for CGM systems should have supported growth during the quarter. This trend is likely to continue in the rest of 2024. Moreover, the approval of its latest glucose sensor, Stello, for people with type 2 diabetes, earlier this year buoys optimism. Stello is the first device from the company’s portfolio for type 2 diabetes patients.
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. The availability of new sensors, like G6 & G7, in new international markets is also boosting revenue growth.
The Zacks Consensus Estimate for U.S. and International revenues is pegged at $742.7 million and $292.1 million, respectively, for the second quarter.
However, an increase in costs and intense competition might have weighed on DXCM’s performance in the quarter under review.
DexCom, Inc. Price and Consensus
DexCom, Inc. price-consensus-chart | DexCom, Inc. Quote
What Our Quantitative Model Suggests
Per our proven model, 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. That is not the case here, as you will see below.
Earnings ESP: DexCom has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently 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 reporting cycle.
McKesson (MCK - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have surged 25.3% year to date. MCK’s earnings missed estimates in the last reported quarter. McKesson has a four-quarter average earnings surprise of 8.38%.
Inari Medical (NARI - Free Report) has an Earnings ESP of +45.95% and a Zacks Rank of 3 at present.
Its shares have lost 15.4% year to date. NARI’s earnings missed estimates in the last reported quarter. Inari Medical has a trailing four-quarter average earnings surprise of 130.74%.
AxoGen (AXGN - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present.
The stock has risen 33.5% year to date. AXGN’s earnings beat estimates in the last reported quarter. AxoGen has a four-quarter average earnings surprise of 66.46%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.