DexCom Q4 results are likely to reflect strong growth on the back of U.S. sales expansion, global gains and Stelo traction, driving momentum and market expansion into 2025.
Evaluate the expected performance of DexCom (DXCM) for the quarter ended December 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
DexCom (DXCM 1.51%) is a healthcare company that makes continuous glucose monitoring (CGM) devices, which help people track glucose levels.
Medical device specialist DexCom (DXCM -0.90%) has substantially underperformed the market over the trailing-12-month period. The diabetes-focused company disappointed investors last year due to unimpressive financial results, especially in the second and third quarters.
DexCom Inc. DXCM is off to a strong start in 2025, with its stock rallying 5.7% following the release of its preliminary results for the fourth quarter and fiscal 2024 on Jan. 13, 2025. The company's robust performance has reaffirmed investor confidence, driven by impressive revenue growth and a promising outlook for 2025.
DexCom, Inc.'s growth is impressive but limited by its niche market, with my projected ceiling being ~$7.5bn in peak annual revenues. Despite positive Q4 2024 results, DexCom's stock is fairly valued, with muted enthusiasm from Wall Street today, and a "Hold" rating for me for 2025. I suspect the market overestimated DexCom's mass-market potential, leading to a reality check and a savage bear run on its stock in the past year.
Stocks tend to perform well in January, but that's not a good reason to invest this month. Strong returns aren't made in a single 30-day period.
DXCM's top line reflects strong demand for its CGM sensors. International expansion is also driving sales higher.
DXCM continues to raise optimism among investors owing to its strong product portfolio.
Dexcom forecast total annual revenue in line with Wall Street expectations on Monday, on bets of strong demand for its continuous glucose monitors for diabetes patients.
Abbott Laboratories said on Monday it and DexCom have reached an agreement to settle all patent disputes between the companies related to continuous glucose monitoring devices.
DexCom (DXCM) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.