Other question:
âť“Is revenue growing?
âť“Are margins stable/expanding?
âť“Profits?
âť“Balance sheet?
âť“New opportunities?
âť“New threats?
1/ How to review quarterly earnings 🧵
A step by step guide using $DXCM as an example
⬇️
Other question:
âť“Is revenue growing?
âť“Are margins stable/expanding?
âť“Profits?
âť“Balance sheet?
âť“New opportunities?
âť“New threats?
Tab 1 - Current company earnings report / shareholder letter
Tab 2 - Previous company earnings report / shareholder letter (check guidance)
Tab 3 - Analyst estimates
Tab 4 - Call Transcript
I search "Dexcom Investor Relations"
I click on "press release"
Open the newest quarterly earnings report and last quarter
It can also be a shareholder letter/presentation
Open up $DXCM in yahoo finance
The "news" section usually has a link to reports on whether the company beat/met estimates
The "analysis" tab is a good source, but sometimes it updates to the next quarter too quickly
@themotleyfool transcripts are best
Sometimes links are on Yahoo Finance news
Search "Fool DXCM Transcript" if not
Seekingalpha / NASDAQ are two other free sources
Revenue growth: 23% to $569 million
Revenue vs. Wall Street expectations (beat by 1.88%)âś…
non-gaap EPS growth: -21% to $0.91
EPS vs. Wall Street expectations (meet expectation)âś…
Management issued yearly guidance for 2020 in Q3 2020
Revenue +29% to $1.9 billion (actual +31% to $1.93 billion)âś…
Non-GAAP Gross margin 66% (actual 66.7%)âś…
Non-GAAP Operating margin 16% (actual 16.5%)âś…
Margins
Use transcript / press release / or calculate yourself
Gross 70.2% vs. 66.8% (gross profit grew faster than revenue)
Non-gaap Operating: 18.3% vs. 22.5% (investigate!)
non-gaap Net: 15.8% vs. 22.9% (investigate!)
News from press release?
âś…Building out salesforce (explains operating margin & net margin drop)
âś…Reimbursement in France
Read through transcript:
✅Gross margin ⬆️ from new manufacturing facility
âś…Super bowl commerical
âś…New service center in Lithuania
âś…New manufacturing site in Malaysia
âś…New sensor launching in 2nd half 2021
âś…Enter VC space
âś…50% of sales now coming through pharmacy
âś…International sales 35% of revenue
âś…International DTC campaign launching
2021 Guidance:
Revenue:
Management expects 15% to 20% growth
Wall Street expects 21%
Margins:
Gross ⬇️ to 65%
Operating ⬇️ 13%
Management has a long history of under-promising & over-delivering, so I view these numbers as the floor, not the ceiling
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