Shares in Dexcom popped Friday after the medical device maker reported June-quarter earnings and revenue that topped Wall Street targets. Strong international growth boosted financial results of Dexcom stock.
The company reported second-quarter earnings after the market close on Thursday.
Dexcom said second-quarter profit doubled to 34 cents a share. Revenue climbed 25% to $871.3 million. Analysts had predicted earnings of 23 cents a share on revenue of $841 million.
International Growth A Bright Spot
"DexCom reported second-quarter revenue of $871.3 million, beating consensus by about $30 million, driven by another record quarter of global patient adds and a particularly strong international revenue number," William Blair analyst Margaret Kaczor said in a note to clients.
She added: "Along with the beat, management raised sales guidance by about $68 million at the midpoint—more than double the beat to consensus — to $3.5 billion to $3.55 billion (20%-22% growth)."
Dexcom is a leading maker of continuous glucose monitors alongside Abbott Laboratories and Medtronic. At a recent investor day, the company said its revenue could reach $5.1 billion in 2025. Dexcom's sales last year rose 19% to $2.91 billion.
For full-year 2023, the company now expects revenue in a range of $3.5 billion to $3.55 billion, up about 21%. Analysts had predicted revenue of $3.5 billion.
DXCM Stock Up 14% This Year
In morning trading on the stock market today, Dexcom stock popped 7% to 138.41. Heading into the Dexcom earnings report, shares had gained 14% in 2023.
With Friday's gain, Dexcom stock is extended from an entry point of 126.44 out of a flat base.
At a recent investor day, the company said its revenue could reach $5.1 billion in 2025. Dexcom's sales last year rose 19% to $2.91 billion.
The company recently announced plans to launch a new continuous glucose monitor next year. This product will be for people with type 2 diabetes who aren't dependent on insulin.
Dexcom stock holds a Relative Strength Rating 86 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
