Earnings Preview: DexCom
On Thursday, February 11, DexCom (NASDAQ:DXCM) will release its latest earnings report. Decipher the announcement with Benzinga's help.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Wall Street expects EPS of $0.92 and sales around $552.23 million. In the same quarter last year, DexCom announced EPS of $1.15 on revenue of $462.80 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 20.0%. Revenue would be have grown 19.32% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | 0.64 | 0.35 | 0.14 | 0.74 |
EPS Actual | 0.94 | 0.79 | 0.44 | 1.15 |
Revenue Estimate | 476.75 M | 415.39 M | 358.62 M | 442.38 M |
Revenue Actual | 500.90 M | 451.80 M | 405.10 M | 462.80 M |
Stock Performance
Shares of DexCom were trading at $401.03 as of February 09. Over the last 52-week period, shares are up 60.45%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. DexCom is scheduled to hold the call at 16:30:00 ET and can be accessed here.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
