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

DexCom, Inc. DXCM is scheduled to release first-quarter 2024 results on Apr 25, after the closing bell. In the last reported quarter, the company’s earnings beat estimates by 16.28%.

The bottom line also outpaced the consensus mark in each of the trailing four quarters, delivering an average surprise of 32.81%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for DexCom’s first-quarter revenues is pegged at $911.2 million, indicating growth of 22.3% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at 27 cents per share, implying a 58.8% 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 first-quarter performance.

In the fourth quarter, International revenues (26% of total revenues) surged 27% year over year to $265.4 million. Organically, the segment’s revenues were up 23% in the last reported quarter. U.S. revenues (74% of total revenues) increased 27% in the same period. The trend is likely to have continued in the first 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, which resulted in additional revenues.

The expansion of coverage for CGM systems during the quarter supported growth. This trend is likely to continue in 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 $650.2 million and $261.2 million, respectively, for the first 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 EPS Surprise

DexCom, Inc. Price and EPS Surprise

DexCom, Inc. price-eps-surprise | 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 #3.

Stocks Worth a Look

Here are a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Edwards Lifesciences EW has an Earnings ESP of +1.02% 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 12.7% year to date. EW’s earnings met estimates in the last reported quarter. Edwards Lifesciences has a trailing four-quarter average earnings surprise of 0.80%.

SiBone SIBN has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.

Its shares have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.

Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank of 3 at present.

The stock has risen 7.4% year to date. CAH’s earnings beat estimates in the last reported quarter. Cardinal Health has a trailing four-quarter average earnings surprise of 15.64%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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DexCom, Inc. (DXCM) : Free Stock Analysis Report

SiBone (SIBN) : Free Stock Analysis Report

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

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