DexCom, Inc.: Insights Ahead of Q4 Earnings Release
With a market cap of $33 billion, DexCom, Inc. (DXCM) stands out as a pioneer in continuous glucose monitoring (CGM) technology. Based in San Diego, California, the company provides innovative tools designed to help diabetics manage their health through real-time glucose data. The upcoming Q4 earnings report is scheduled for Thursday, February 13.
Analysts Anticipate Steady Earnings Growth
Analysts expect DexCom to announce a profit of $0.51 per share, reflecting a 2% increase from $0.50 per share in the same quarter last year. Notably, the company has consistently outperformed Wall Street’s expectations in the last four quarters. In its most recent report, DexCom achieved an EPS of $0.45, exceeding estimates by 4.7%.
Forecasts Suggest Positive Trends for 2024 and 2025
Looking ahead, analysts predict that DexCom will report an EPS of $1.70 in fiscal 2024, marking an 11.8% increase from $1.52 in fiscal 2023. By fiscal 2025, EPS is projected to reach $2, reflecting a substantial growth of 17.7% annually.
Over the past 52 weeks, DexCom’s shares have dropped 32.7%, falling short of the S&P 500 Index’s ($SPX) 26.5% gains and trailing the Health Care Select Sector SPDR Fund (XLV) modest growth.
Recent Earnings Performance and Future Outlook
Following its Q3 earnings results released on October 24, DexCom’s shares fell by 1.9%. The company reported revenue of $994.2 million, exceeding Wall Street’s projections of $991.6 million and demonstrating a 2% increase year-over-year. DexCom has reaffirmed its guidance for fiscal year 2024, maintaining a revenue outlook between $4 billion and $4.05 billion, which indicates organic growth of 11% to 13%. The company also expects a non-GAAP gross profit margin around 63%, a non-GAAP operating margin of 20%, and an adjusted EBITDA margin close to 29%.
Analysts Offer a Positive Consensus on DexCom’s Stock
Current sentiment among analysts remains bullish regarding DexCom’s stock, reflecting a “Strong Buy” rating overall. Out of 22 analysts following the company, 17 recommend a “Strong Buy,” one supports a “Moderate Buy,” and four suggest a “Hold.” This favorable stance has improved from three months ago when 16 analysts indicated a “Strong Buy.”
The average price target for DXCM is set at $98.86, implying a potential upside of 17.2% from current levels.
On the date of publication, Rashmi Kumari 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. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
