San Diego, California-based DexCom, Inc. (DXCM) is a medical device company that designs, develops, and commercializes continuous glucose monitoring (CGM) systems. Valued at $26.2 billion by market cap, the company develops a small implantable device that continuously measures glucose levels in subcutaneous tissue just under the skin and a small external receiver to which the sensor transmits glucose levels at specified intervals. The global leader in glucose biosensing is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, May 1.
Ahead of the event, analysts expect DXCM to report a profit of $0.33 per share on a diluted basis, up 3.1% from $0.32 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
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For the full year, analysts expect DXCM to report EPS of $2.03, up 23.8% from $1.64 in fiscal 2024. Its EPS is expected to rise 21.2% year over year to $2.46 in fiscal 2026.
DXCM stock has considerably underperformed the S&P 500’s ($SPX) 2.1% gains over the past 52 weeks, with shares down 52% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 4.7% dip over the same time frame.
DXCM’s weak performance can be linked to the operational and cost challenges which led to a decline in both gross and operating margins.
On Feb. 13, DXCM reported its Q4 results, and its shares closed up by 5.9% in the following trading session. Its adjusted EPS of $0.45 missed Wall Street expectations of $0.50. The company’s revenue was $1.1 billion, meeting Wall Street forecasts. DXCM expects full-year revenue to be $4.6 billion.
Analysts’ consensus opinion on DXCM stock is bullish, with a “Strong Buy” rating overall. Out of 23 analysts covering the stock, 18 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and four give a “Hold.” DXCM’s average analyst price target is $101.22, indicating an ambitious potential upside of 50.4% from the current levels.
On the date of publication, Neha Panjwani 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.
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