DexCom Set to Report Q1 2025 Earnings Amidst Performance Challenges

San Diego-based DexCom, Inc. (DXCM) specializes in designing, developing, and commercializing continuous glucose monitoring (CGM) systems. The company, with a market capitalization of $26.2 billion, produces a small implantable device that continuously measures glucose levels in the subcutaneous tissue beneath the skin. This device works in conjunction with a small external receiver that receives glucose readings at specified intervals. As the global leader in glucose biosensing, DexCom is poised to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, May 1.

In anticipation of the earnings report, analysts project that DXCM will report a profit of $0.33 per share on a diluted basis. This marks a 3.1% increase from the $0.32 per share reported in the same quarter last year. Notably, the company has exceeded consensus estimates in three of the last four quarters, while falling short on one occasion.

For the entire year, analysts forecast that DXCM will report earnings per share (EPS) of $2.03, reflecting a significant 23.8% increase from the $1.64 reported in fiscal 2024. Expectations for fiscal 2026 show the EPS rising 21.2% year over year to $2.46.

In contrast to the overall market, DXCM stock has notably underperformed. Over the past 52 weeks, the stock is down 52%, while the S&P 500 ($SPX) has gained 2.1%. Similarly, it lagged behind the Health Care Select Sector SPDR Fund (XLV), which dipped by 4.7% during the same period.

The decline in DXCM’s stock price can be attributed to various operational and cost challenges that have impacted both gross and operating margins.

On February 13, DXCM released its Q4 results, resulting in shares climbing 5.9% in the subsequent trading session. Although the adjusted EPS came in at $0.45, it fell short of Wall Street’s expectations of $0.50. However, the company reported revenue of $1.1 billion, aligning with market forecasts. DexCom anticipates full-year revenue to reach $4.6 billion.

Despite these challenges, analysts are generally optimistic about DXCM stock. The overall consensus is a “Strong Buy,” with 18 out of 23 analysts rating it as such. One analyst recommends a “Moderate Buy,” while four advise a “Hold.” The average price target among analysts is $101.22, suggesting a potential upside of 50.4% from current levels.

On the date of publication, Neha Panjwani did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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