The 10-second takeaway
For the quarter ended March 31 (Q1), DexCom beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Margins grew across the board.
DexCom notched revenue of $20.1 million. The 14 analysts polled by S&P Capital IQ foresaw net sales of $19.9 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $14.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.19. The 12 earnings estimates compiled by S&P Capital IQ forecast -$0.19 per share. GAAP EPS were -$0.21 for Q1 compared to -$0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.7%, 1,060 basis points better than the prior-year quarter. Operating margin was -76.6%, 710 basis points better than the prior-year quarter. Net margin was -70.0%, 1,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $22.2 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $94.4 million. The average EPS estimate is -$0.72.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 81 members rating the stock outperform and 98 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give DexCom a green thumbs-up, and 52 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DexCom is outperform, with an average price target of $12.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.