What to expect from DexCom’s (DXCM) Q3 earnings

Medical device company DexCom (NASDAQ:DXCM) will be reporting results this Thursday after the bell. Here’s what investors should know.

DexCom beat analysts’ revenue expectations last quarter, reporting revenues of $1.31 billion, up 13.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates.

Is DexCom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting DexCom’s revenue to grow 9.9% year on year, slowing from the 21.6% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. DexCom has a history of exceeding Wall Street’s expectations.

Looking at DexCom’s peers in the healthcare equipment and supplies segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Intuitive Surgical delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 5.3%, and Neogen reported revenues up 6.5%, topping estimates by 7%. Intuitive Surgical traded down 2.3% following the results while Neogen was also down 2.3%.

Read our full analysis of Intuitive Surgical’s results here and Neogen’s results here.

There has been positive sentiment among investors in the healthcare equipment and supplies segment, with share prices up 3.6% on average over the last month. DexCom is down 9% during the same time and is heading into earnings with an average analyst price target of $96.19 (compared to the current share price of $78.84).

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