/Dexcom%20Inc%20logo%20on%20sign-by%20Michael%20Vi%20via%20Shutterstock.jpg)
Valued at $33 billion by market cap, DexCom, Inc. (DXCM) is a global leader in continuous glucose monitoring (CGM) technology. Headquartered in San Diego, California, the company specializes in innovative solutions that empower individuals with diabetes to better manage their health through real-time glucose tracking. The company is set to release its Q4 earnings on Thursday, Feb. 13.
Ahead of this event, analysts project the medical device company to report a profit of $0.51 per share, up 2% from $0.50 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, DexCom posted an EPS of $0.45, surpassing the consensus estimate by 4.7%.
For fiscal 2024, analysts forecast DexCom to report EPS of $1.70, up 11.8% from $1.52 in fiscal 2023. Looking ahead to fiscal 2025, analysts anticipate EPS to reach $2, surging by 17.7% annually.
DexCom's shares have declined 32.7% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 26.5% gains and the modest growth of the Health Care Select Sector SPDR Fund (XLV).
DexCom's shares declined by 1.9% in the subsequent trading session after the release of its Q3 earnings results on Oct. 24. The company reported revenue of $994.2 million, surpassing Wall Street's expectations of $991.6 million and reflecting a 2% year-over-year increase. DexCom has reaffirmed its fiscal year 2024 guidance, maintaining its revenue outlook between $4 billion and $4.05 billion, representing 11% to 13% organic growth. The company also expects a non-GAAP gross profit margin of approximately 63%, a non-GAAP operating margin of around 20%, and an adjusted EBITDA margin of roughly 29%.
Analysts' consensus view on DexCom’s stock is bullish, with a "Strong Buy" rating overall. Out of 22 analysts covering the stock, 17 suggest a "Strong Buy," one advises "Moderate Buy," and four recommend a "Hold." This configuration is more bullish than three months ago, with 16 analysts suggesting a "Strong Buy."
The average analyst price target for DXCM is $98.86, suggesting a modest potential upside of 17.2% from current levels.
