The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DexCom met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share grew.
Margins dropped across the board.
DexCom booked revenue of $23.1 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $23.0 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $18.3 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 -$0.15. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.19 per share. GAAP EPS were -$0.25 for Q3 against -$0.20 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 36.4%, 830 basis points worse than the prior-year quarter. Operating margin was -75.0%, 210 basis points worse than the prior-year quarter. Net margin was -74.8%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $27.4 million. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $93.8 million. The average EPS estimate is -$0.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 76 members out of 173 rating the stock outperform, and 97 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give DexCom a green thumbs-up, and 42 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 $14.43.
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