DexCom, Inc. DXCM reported strong preliminary results for the fourth quarter and full-year 2024. In response, the company’s stock jumped 2.7% on Jan. 13.
The company is scheduled to release its fourth-quarter results on Feb. 13, 2025.
The company achieved total revenues of at least $1.11 billion, an 8% increase from the same period in 2023. The Zacks Consensus Estimate is $1.10 billion.
U.S. revenues reached approximately $803 million, representing a 4% rise year over year, while international revenues climbed 17% to around $310 million. However, the quarter faced some headwinds as the gross margin was adversely impacted by a non-cash charge stemming from inventory damage during transit and production inefficiencies.
DexCom, Inc. Price
DexCom, Inc. price | DexCom, Inc. Quote
Fiscal 2024 Highlights
For the full-year 2024, Dexcom’s revenues are estimated at approximately $4.03 billion, implying 11% growth over 2023. The Zacks Consensus Estimate is pegged at $4.02 billion.
The company anticipates adjusted gross profit and operating margin of approximately 62% and 19%, respectively, for the full year. These figures reflect the company’s ability to navigate challenges while making key strategic investments that will likely drive long-term growth and position the company to capitalize on future opportunities.
Initial 2025 Outlook
Dexcom provided an optimistic outlook for 2025, projecting total revenues of $4.60 billion, representing an estimated growth of 14% over 2024. This forecast is supported by several factors, including an anticipated increase in sensor volume driven by enhanced CGM access and awareness, the ongoing international expansion and the rollout of Dexcom’s latest product, Stelo. The company also expects adjusted gross profit margin in the range of 64% to 65% and adjusted operating margin to improve to approximately 21%.
Dexcom’s focus on strategic investments and innovation in 2024 laid the foundation for its ambitious plans for 2025. With a commitment to expanding CGM technology access and enhancing its product portfolio, Dexcom aims to strengthen its leadership position in the industry. The company remains well-positioned to meet the growing demand for advanced diabetes management solutions globally.
Price Performance
Shares of the company have declined 11.8% in the past three months against the industry’s 15.6% rise and the S&P 500’s 5.9% growth.
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Zacks Rank & Stocks to Consider
DexCom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.
Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 15% against the industry’s 0.4% decline in the past three months.
Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.
ARAY’s shares have gained 19.8% against the industry’s 0.4% decline in the past three months.
Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.
ABT’s shares have declined 2.5% in the past three months compared with the industry’s 2.9% decrease.
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