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DexCom Beats on Both Top and Bottom Lines

Thursday - 5/2/2013, 2:00am  ET

DexCom reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), DexCom beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP loss per share dropped.

Margins grew across the board.

Revenue details
DexCom reported revenue of $29.6 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $28.3 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $20.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.16. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.17 per share. GAAP EPS were -$0.16 for Q1 versus -$0.21 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.7%, 900 basis points better than the prior-year quarter. Operating margin was -36.8%, much better than the prior-year quarter. Net margin was -37.5%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $31.2 million. On the bottom line, the average EPS estimate is -$0.15.

Next year's average estimate for revenue is $129.7 million. The average EPS estimate is -$0.54.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 79 members out of 176 rating the stock outperform, and 97 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give DexCom a green thumbs-up, and 40 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 $16.42.

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This article was originally published as DexCom Beats on Both Top and Bottom Lineson Fool.com

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