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Based in San Diego, California, DexCom, Inc. (DXCM), with a market cap of $44.8 billion, is a leader in the medical device sector, specializing in continuous glucose monitoring systems for diabetes management. The company is set to unveil its fiscal Q2 earnings results after the market closes on Thursday, Jul. 25.
Ahead of this event, analysts expect DXCM to report a profit of $0.39 per share, up 14.7% from $0.34 per share in the year-ago quarter. The company holds a solid track record of surpassing Wall Street's bottom-line estimates in each of the past four quarters. In the most recent quarter, the company’s adjusted EPS of $0.32 climbed a notable 88.2% annually, surpassing the consensus estimate by a solid 18.5% margin due to strong demand for glucose monitoring.
For fiscal 2024, analysts expect DXCM to report EPS of $1.78, up 17.1 from $1.52 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 25.3% annually to $2.23.
DXCM has underperformed the broader markets in 2024, with shares down 9.2% on a YTD basis compared to the S&P 500 Index's ($SPX) 17.1% gain and the S&P 500 Healthcare Sector SPDR's (XLV) 8% returns over the same period.
On Feb. 8, DexCom's shares initially rose slightly after beating Q4 earnings estimates but dropped 5.2% later as the company reiterated a 2024 sales forecast below analyst expectations amidst competitive pressures from GLP-1 drugs in the continuous glucose monitoring (CGM) market.
Despite exceeding profit and revenue expectations, the stock experienced a significant 9.9% drop following the release of its Q1 earnings on Apr. 25. This was primarily due to the company's 2024 annual sales forecast, which, despite a slight increase at the lower end, did not meet analysts' expectations.
Analysts' consensus rating on DexCom stock is bullish, with a "Strong Buy" rating overall. Out of 22 analysts covering the stock, opinions include 18 "Strong Buys,” one "Moderate Buy," and three "Holds." The average analyst price target for DXCM is $150.28, suggesting a modest potential upside of 33.4% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
