Dexcom (Nasdaq:DXCM) shares dipped after hours on fourth-quarter results that came in ahead of the consensus forecast.
Shares of DXCM fell 1.6% at $125 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day up 0.2%.
The San Diego-based continuous glucose monitor (CGM) maker posted profits of $256.3 million. That equals 62¢ per share on sales of $1.03 billion for the three months ended Dec. 31, 2023. Dexcom nearly tripled its bottom line on sales growth of 26.9%.
Adjusted to exclude one-time items, earnings per share totaled 50¢, landing 7¢ ahead of expectations on Wall Street. Sales narrowly beat the forecasts for $1.02 billion in revenue.
The company highlighted volume growth and new customer additions as the primary growth driver for revenues. Dexcom says awareness of real-time CGM continues to increase, bolstering its business.
Recent highlights include the FDA submission of a new sensor for people with diabetes who don’t use insulin, as well as the integration of the next-generation G7 CGM into automated insulin delivery technology from Tandem Diabetes Care and Beta Bionics.
“2023 was an incredible year for Dexcom with significantly expanded access, another year of record new customer starts, and growing momentum behind our global rollout of Dexcom G7,” Sayer said in a news release. “We are looking forward to another great year in 2024 as we strive to improve the health of significantly more people around the world with Dexcom CGM technology.”
Dexcom projects revenues between $4.15 billion and $4.35 billion in 2024, marking growth between 16% and 21%.
The analysts’ view on Dexcom
BTIG analysts Marie Thibault and Sam Eiber said Dexcom management acknowledged that the company is ahead of schedule on long-range plan targets. The analysts say this could mean another year of beats and raises.
The potential new market opened up by the new Stelo sensor for non-insulin users, plus other developments creates a “long runway” of growth drivers.
Thibault and Eiber maintain a “Buy” rating for Dexcom.
“We are not forgetting about the continued adoption among ‘core’ T1D and insulin-intensive T2D patients, and the recurring revenue business model underlying the significantly expanded user base. We move our 2024 and 2025 revenue forecast higher (2025 now beyond the LRP target) and reiterate our $150 PT based on 11.5x our 12-24 month sales estimate,” they wrote.