Developer of continuous glucose monitoring systems, DexCom Inc. (DXCM), recently announced preliminary product revenues for fourth quarter and full year 2014.
DexCom anticipates fourth quarter product revenues to surge an impressive 64% on a year-over-year basis to $84 million. The stated figure is higher than the current Zacks Consensus Estimate which is pegged at $82 million.
Notably, product revenues have grown over 60% on a year-over-year basis for six consecutive quarters. The company’s average year-over-year quarterly revenue growth has been 65% since the launch of G4 PLATINUM.
For 2014, revenues are estimated to soar 64% on a year-over-year basis to $257 million, in line with the current Zacks Consensus Estimate. According to DexCom’s estimates, the company’s patient base in the U.S. grew by more than 50% in 2014.
DexCom is riding high on the back of a number of FDA approvals as well as a robust pipeline. DexCom has received clearances from the FDA for G4 Platinum Continuous Glucose Monitoring (CGM) system and the CGM remote mobile communications device – DexCom SHARE. The company also remains focused on introducing a steady stream of innovative products related to its sensor technology.
DexCom’s revenues have been outperforming the Zacks Consensus Estimate for quite some time now and going by the preliminary estimations, we hope to see another beat.
For 2015, DexCom expects product revenues in the range of $340–$360 million. The current Zacks Consensus Estimate for the year is pegged at $350 million, which lies within the company’s guidance range.
We believe DexCom will continue to generate significant top-line growth on the back of strong performance by G4 Platinum coupled with innovative product launches.
Nevertheless, the company continues to face stiff competition from Johnson and Johnson (JNJ), Abbott Laboratories (ABT) and Medtronic (MDT), which remains a potent headwind.
Currently, DexCom carries a Zacks Rank #3 (Hold).
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