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With a market cap of $27.1 billion, DexCom, Inc. (DXCM) is a leading medical device company, specializing in continuous glucose monitoring (CGM) systems for diabetes management. The San Diego, California-based company offers real-time blood glucose monitoring solutions to help patients and healthcare providers to manage diabetes globally. The company is expected to release its fiscal Q3 earnings results after the market closes on Thursday, Oct. 24.
Ahead of this event, analysts project the medical device company to report a profit of $0.44 per share, reflecting a 12% decrease from $0.50 per share in the year-ago quarter. However, the company has consistently surpassed Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, DXCM posted an EPS of $0.43, surpassing the consensus estimate by 10.3%.
For fiscal 2024, analysts forecast DXCM to report EPS of $1.69, up 11.2% from $1.52 in fiscal 2023. Looking ahead to fiscal 2025, analysts anticipate an annual growth rate of 18.9%, with projected EPS reaching $2.01.
DexCom declined 22.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 34.9% gain and the Health Care Select Sector SPDR Fund's (XLV) 18.5% increase over the same period.
Despite beating earnings estimates on Jul. 25, DexCom's stock plummeted 40.7% the following day because it missed Q2 revenue expectations, reporting $1 billion. The company also lowered its full-year 2024 revenue guidance to $4 billion - $4.1 billion, citing slower-than-expected new patient acquisition and market share loss in the durable medical equipment (DME) channel. Concerns also arose over the impact of GLP-1 weight-loss drugs, which could reduce demand for DexCom's glucose monitoring systems.
Analysts' consensus view on DexCom stock is bullish, with a "Strong Buy" rating overall. Out of 22 analysts covering the stock, 16 suggest a "Strong Buy," one advises "Moderate Buy," and five recommend a "Hold." This configuration is less bullish than three months ago, with 18 analysts suggesting a "Strong Buy."
The average analyst price target for DXCM is $96.18, suggesting a modest potential upside of 41.2% 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.
