Dexcom stock recovered Friday after the diabetes devices maker missed Wall Street's fourth-quarter profit expectations, though sales came in ahead.
San Diego, Calif.-based Dexcom makes continuous glucose monitors, or CGMs. These body-worn devices keep tabs on blood sugar in real time, helping patients with diabetes and people who want to know more about their metabolic health.
In the last three months of 2024, Dexcom earned an adjusted 45 cents per share on $1.11 billion in sales. Earnings slipped 10% year over year, and missed forecasts by a nickel per share. Sales grew 8% on a strict, as-reported basis to $1.11 billion, matching projections.
But Dexcom stock skidded more than 3% to 81.15 in late action Thursday, following the report. At Friday's close, though, shares rose 5.9% to 89.07.
Dexcom Stock: 11% Sales Growth
Dexcom expects 2025 sales to grow 14% to $6.4 billion. That's in line with forecasts for $6.41 billion, according to FactSet. Sales growth would outperform 2024, when sales advanced 11% on a strict, as-reported basis and 12% organically.
This will be the first full year with Stelo on the market. Stelo is Dexcom's CGM for patients who don't use insulin. Though it's not specifically marketed to people without diabetes, the monitor is available over the counter and online. So, people without diabetes are inevitably using it.
"This is more of a consumer experience than our diabetes-related products and those for insulin delivery," Chief Executive Kevin Sayer told Investor's Business Daily in a January interview. "Loud and clear, people want more. They want more insights with respect to glucose."
Dexcom is working to answer that request. In the fourth quarter, the company launched the first generative artificial intelligence feature in Stelo. It provides customers with the framework for a more personalized look at their glucose levels, activity and sleep.
Dexcom stock, though, remains under pressure. If the premarket move holds up, shares will open sitting just above their 50-day moving average, according to MarketSurge.
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