Dexcom (Nadsaq:DXCM) announced fourth-quarter results that came in mixed compared to the consensus forecast — but analysts are optimistic about 2025.
Shares of DXCM initially fell after-hours yesterday on the after-market-close report — but by midday today, they were up more than 5% to $89.03 apiece.
The San Diego-based continuous glucose monitor (CGM) maker reported profits of $151.7 million. That equals 38¢ per share on sales of $1.113 billion for the three months ended Dec. 31, 2024.
Dexcom recorded a 40.8% bottom-line slide on a sales increase of 7.6%.
Adjusted to exclude one-time items, earnings per share came in at 45¢. That landed 5¢ shy of expectations on Wall Street. Sales narrowly topped the estimates as experts forecast $1.1 billion in revenue.
Highlights for the quarter included the submission of the 15-day CGM system to the FDA. The company also launched generative AI integration with its sensors and inked a deal with health monitoring technology company Oura.
Kevin Sayer, Dexcom’s chair, president and CEO, outlined those developments and what’s to come from Dexcom in an interview with Drug Delivery Business News earlier this year.
“In 2024, we implemented our largest US commercial sales force expansion, had two major product launches with Dexcom One+ and Stelo and submitted our G7 15-day product to the FDA,” Sayer said in a news release. “As we enter 2025, we look forward to building on these investments as we unlock the next wave of access to Dexcom CGM globally.”
Dexcom projects $4.60 billion in revenue for 2025, marking 14% growth year-over-year.
The analysts’ take on Dexcom
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang say the quarterly results allowed Dexcom to end the year “on a high note.”
They maintained a “Buy” rating for the company, noting added guidance for strong category growth across patient segments. The company expects a steady durable medical equipment share, new wins outside the U.S., more contributions from the Stelo over-the-counter CGM and the launch of the 15-day CGM in the second half of 2025.
“We believe DXCM is moving in the right direction after facing significant headwinds earlier in 2024, and as we look into 2025, we think there are several catalysts that could push numbers higher as the year progresses,” the analysts wrote.
This article initially ran on Thursday, Feb. 13, 2025. It was updated on Friday, Feb. 14, with next-day stock price and the reaction from analysts.
