(DXCM) DexCom Stays at Neutral

On May 22, 2013, we reiterated DexCom, Inc. (DXCM) at Neutral based on its first quarter 2013 earnings results.

On May 1, DexCom announced results for the reported quarter. The company incurred adjusted loss per share of 16 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents per share.

Revenues surged 47% year over year to $29.6 million in the first quarter, beating the Zacks Consensus Estimate of $28 million. Product sales increased about 49% to $27.8 million while development grant and other revenues improved 20% to $1.8 million in the reported quarter.

Going forward, its G4 Platinum offering is expected to fuel growth. DexCom has collaborative agreements with several companies including Tandem Diabetes Care, Inc. and Animas Corporation (a subsidiary of Johnson & Johnson).

On the negative side, competition in the glucose monitoring market is fierce. Moreover, DexCom has incurred losses since inception and its efforts are made more difficult by a stringent regulatory environment.

The Zacks Consensus Estimate has improved by a penny over the past month to a loss of 54 cents for 2013. The Zacks Consensus Estimate for 2014 has improved by a penny to a loss of 21 cents over the same time frame.

The stock carries a Zacks Rank #3 (Hold). We are more optimistic about CryoLife Inc. (CRY) and Heartware International Inc. (HTWR) each of which carries a Zacks Rank #2 (Buy) and are expected to do well. In addition, Conceptus, Inc. (CPTS) carries a Zacks Rank #1 (Strong Buy) and warrants a look.

CONCEPTUS INC (CPTS): Free Stock Analysis Report

CRYOLIFE INC (CRY): Free Stock Analysis Report

DEXCOM INC (DXCM): Free Stock Analysis Report

HEARTWARE INTL (HTWR): Free Stock Analysis Report

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