Post Earnings Coverage as DexCom’s Q4 Top-line Surged 31%; Outshined Forecasts

Upcoming AWS Coverage on ICON Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 16, 2017 / Active Wall St. announces its post-earnings coverage on DexCom, Inc. (NASDAQ: DXCM). The company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on February 28, 2017. The San Diego, California-based Company’s quarterly total revenues grew 31% y-o-y, outperforming market consensus estimates. Register with us now for your free membership at:

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One of DexCom’s competitors within the Medical Laboratories & Research space, ICON PLC (NASDAQ: ICLR), reported on February 16, 2017, its financial results for Q4 and full year ended December 31, 2016. AWS will be initiating a research report on ICON in the coming days.

Today, AWS is promoting its earnings coverage on DXCM; touching on ICLR. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the quarter ended on December 31, 2016, DexCom’s total revenues increased to $171.2 million, from $130.8 million recorded at the end of Q4 FY15. Total revenue numbers for Q4 FY16 also topped the market consensus estimates of $168.0 million.

The developer and marketer for glucose monitoring systems reported net loss of $7.4 million, or $0.09 loss per diluted share, in Q4 FY16 versus net income of $1.5 million, or $0.02 per diluted share, in Q4 FY15. Wall Street had expected the Company to report net loss of $0.10 per share.

In FY16, DexCom’s total revenue came in at $573.3 million, up 43% from $402.0 million in the previous year. The Company reported net loss of $65.6 million, or $0.78 loss per diluted share in FY16 versus net loss of $57.6 million, or $0.72 loss per diluted share, in FY15. Furthermore, the Company’s non-GAAP net loss for FY16 was $65.6 million, or $0.78 loss per share, compared to non-GAAP net loss of $21.1 million, or $0.26 loss per share, in FY15.

Operational Metrics

For the reported quarter, the Company’s gross profit stood at $116.7 million, or 68% of total revenues, compared to $91.2 million, or 70% of total revenues, in the prior year’s same quarter. During Q4 FY16, the Company’s research and development expenses increased to $43.7 million from $28.5 million in Q4 FY15. The Company’s selling, general, and administrative expenses during Q4 FY16 came in at $79.1 million compared to $61.1 million in the previous year’s corresponding quarter. The increase in selling, general, and administrative expenses during Q4 FY16 is primarily due to year-over-year increases in head count in of the company’s customer support organizations, as well as a ramp in patient-focused marketing expenses, higher IT cost, and O-U.S. expansion.

The Company reported operating loss of $6.1 million during Q4 FY16 versus operating income of $1.6 million in Q4 FY15. The Company posted loss before income taxes in Q4 FY16 of $7.0 million compared to an income before income taxes of $1.6 million in Q4 FY15. Furthermore, DexCom’s worldwide patient-base increased to approximately 200,000 patients by the end of FY16, up from an estimated 140,000 at the end of FY15.

Cash Flow & Balance Sheet

During full-year FY16, DexCom’s net cash provided by operating activities were $56.2 million, up from $49.0 million in FY15. At the close of books in the reported quarter, DexCom had $94.5 million in cash compared to $86.1 million at the close of books on December 31, 2015.

Outlook

In its guidance for the full-year FY17, DexCom’s revenue is expected to be in the range of $710 million to $740 million, with a growth range of approximately 25% to 30%. The Company’s anticipates operating expenses to increase by 20% to 25% y-o-y in FY17.

Stock Performance

At the close of trading session on Wednesday, March 15, 2017, DexCom’s share price finished the trading session at $77.21, slightly sliding 0.34%. A total volume of 672.39 thousand shares exchanged hands. The stock has surged 18.28% and 20.57% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have surged 29.33%. At Wednesday’s closing price, the stock’s net capitalization stands at $6.48 billion.

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