DexCom (DXCM) to Report Q1 Earnings: What's in the Cards?

DexCom, Inc. DXCM is scheduled to release first-quarter 2021 results on Apr 29, after the closing bell. In the last reported quarter, the company met the Zacks Consensus Estimate. Further, it beat estimates in three of the trailing four quarters, the average surprise being 135.4%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $482.7 million, suggesting growth of 19.2% from the year-ago reported figure. The consensus estimate for earnings stands at 31 cents per share, indicating a decline of 29.6% from the prior-year quarter.

Factors to Note

DexCom’s first-quarter top line is likely to reflect 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 September 2020, the company announced the first-ever registry committed toward keeping a track of the outcomes of patients and healthcare professionals utilizing Continuous Glucose Monitoring (CGM) in hospitals to combat the COVID-19 pandemic.

DexCom, Inc. Price and EPS Surprise

DexCom, Inc. Price and EPS Surprise

DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote

Further, DexCom launched the Patient Assistance Program to help current U.S. customers who have lost their health insurance coverage as a result of the pandemic.

Per third-quarter 2020earnings call the company inked a government wide contract for the sale of DexCom CGM via eligible government buyers, including the Department of Veterans Affairs (VA). With the help of this contract, eligible veterans will have an easier and more convenient pharmacy access.

With respect to company’s intensive business, DexCom announced its co-marketing efforts of G6 CGM with Eli Lilly's new ultra-rapid-acting insulin. This collaboration highlights DexCom’s robust partnership with the team at Eli Lilly and is likely to provide a boost to the company’s efforts to expand awareness of Dexcom CGM among practicing clinicians, which include primary care physicians.

These developments are anticipated to have positively impacted the company’s performance in the to-be-reported quarter.

DexCom has significant opportunity to capitalize on 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 prospects driven by improving global access and awareness. Strength in both direct and distributor markets is likely to have contributed to the company’s first-quarter international revenues.

Improved operational discipline might have favored the first-quarter operating margin.

However, 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 +30.79%. 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 #5 (Strong 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.  

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +0.25% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.50% and a Zacks Rank of 2.

Zimmer Biomet Holdings, Inc. ZBH has an Earnings ESP of +1.92% and a Zacks Rank of 3.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
DexCom, Inc. (DXCM): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report
To read this article on click here.

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.