DexCom Hits New 52-Week High - Analyst Blog

By Zacks Equity Research,

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Shares of San Diego-based medical instruments maker DexCom, Inc. ( DXCM ) reached a new 52-week high of $35.97 in mid-day trading yesterday. Shares of the company closed at $34.03 on the same day, representing a solid one-year and year-to-date returns of 148.2% and 145.7%, respectively.

DXCM has a market cap of $2.4 billion. Average volume of shares traded over the last three months stood at approximately 595.9K.

Shares of DexCom started escalating following its promising third quarter results on Nov 6. The company reported a narrower loss of $6.0 million or 8 cents per share in the quarter compared with $17.3 million or 25 cents in the comparable quarter of 2012 as well as the Zacks Consensus Estimate of a loss of 13 cents.

DXCM's total revenues surged 85.7% to $42.9 million, topping the Zacks Consensus Estimate of $36.0 million, on product revenues that more than doubled to $42.5 million from $21.1 million a year ago. Meanwhile, development grant and other revenues plunged 80.0% to $0.4 million from $2.0 million in the prior year quarter.  

Product gross profit more than tripled to $27.7 million in the quarter from $7.7 million in the third quarter of 2012. Total gross profit increased in the same magnitude to $27.6 million from $8.4 million a year ago while gross margin improved significantly to 64.3% from 36.4% in the 2012-quarter.

DexCom had cash and cash equivalents of $33.4 million as of Sep 30, 2013, significantly up from $8.1 million as of Dec 31, 2012. Total debt remained flat at $7.0 million as of Sep 30, 2013 compared with the same as of Dec 31, 2012.

Currently, DXCM retains a Zacks Rank #2 (Buy). Other medical instrument stocks that are also worth a look include Cynosure, Inc. ( CYNO ), Natus Medical Inc. ( BABY ), and AngioDynamics Inc. ( ANGO ). Cynosure and Natus Medical carry a Zacks Rank #1 (Strong Buy) while AngioDynamics carries a Zacks Rank #2 (Buy).

ANGIODYNAMICS (ANGO): Free Stock Analysis Report

NATUS MEDICAL (BABY): Free Stock Analysis Report

CYNOSURE INC-A (CYNO): Free Stock Analysis Report

DEXCOM INC (DXCM): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ANGO , BABY , CYNO , DXCM

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