Dexcom Stock Sinks on Sales Miss, Guidance Cut: What to Know
Dexcom stock is crashing after the glucose monitoring company reported dismal Q2 revenue and slashed its full-year sales guidance.


Dexcom (DXCM) stock is down over 40% in Friday's session after the continuous glucose monitoring technology company fell short of revenue estimates for its second quarter and slashed its full-year revenue forecast.
In the three months ended June 30, Dexcom's revenue increased 15.3% year-over-year to $1 billion, due mostly to 18.7% growth in the U.S. market to $731.9 million. Its earnings per share (EPS) increased 26.5% from the year-ago period to 43 cents.
"While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards," said Dexcom CEO Kevin Sayer in a statement. "We have a unique opportunity to serve millions of more customers around the world with our differentiated product portfolio and we are taking action to improve our execution and best position ourselves for continued long-term growth."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $1.04 billion and earnings of 39 cents per share, according to CNBC.
The sentiment worsened when Dexcom lowered its full-year revenue forecast. The company now anticipates revenue in the range of $4 billion to $4.05 billion in fiscal 2024, down from its previous forecast of $4.2 billion to $4.35 billion.
For the third quarter, Dexcom expects revenue in the range of $975 million to $1 billion, which it said accounts for "certain unique items impacting 2024 seasonality," including a reorganization of its sales team and lower revenue per user.
Analysts were anticipating revenue of $1.15 billion for the third quarter and $4.3 billion for the full year, according to Yahoo Finance.
Is Dexcom stock a buy, sell or hold?
Wall Street is bullish on the healthcare stock. According to S&P Global Market Intelligence, the average analyst target price for DXCM stock is $102.88, representing implied upside of more than 60% to current levels. Additionally, the consensus recommendation is a Buy.
However, analysts may very well revise their targets lower and reduce their ratings in the days and weeks ahead following the earnings results.
Financial services firm Jefferies is one that already adjusted its price target on Dexcom, lowering it to $100 from $160 while maintaining its Buy rating.
"DXCM cited execution issues in Q2 and expects issues around sales force disruption, channel mix, and rebates to persist through the year and recovery in 2025," said Jefferies analyst Matthew Taylor. "We do not see the DXCM issues as related to market demand or competition, believing they are mostly execution based and 'fixable' over time."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Here's How the Child Tax Credit Could Increase Under Trump
Tax Credits House Republicans released details on President Trump’s ‘one big, beautiful bill,’ including an increased child tax credit.
-
New Overtime Tax Deduction Proposed for Millions Working Extra Hours
Tax Law Some lawmakers and President Trump want to offer overtime tax relief. But will a tax deduction or an exemption help you most?
-
April CPI Keeps Fed Rate Cuts on Hold for Now: What the Experts Say
The April CPI report is unlikely to change the Fed's wait-and-see approach to interest rates.
-
How to Turn Education Planning Into Retirement Planning
Nervous about investing in a 529 plan? If college doesn't pan out, the money can now be rolled over into a Roth IRA, which will grow tax-free until retirement.
-
We Took Them in After the Fire, and Now They Won't Leave
A well-meaning older couple responded to a young couple's plea for help. Now they're looking at having to evict tenants rather than simply asking houseguests to go. How could this happen?
-
How Financial Advisers Can Help Clients Navigate the SSFA
The Social Security Fairness Act's big changes and new opportunities could require adjustments in tax strategy for some Social Security recipients.
-
Six Steps for Financial Advisers to Make Compliant Video Testimonials
Following these steps in order can help ensure you don't end up breaking any rules or having to redo your work.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade Deal
The two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Why Has the IPO Market Gone Cold?
Hopes were high that 2025 would see strong IPO activity, but the market has recently cooled. Here's why.
-
The Best Investing Advice for College Grads
Getting a head start on investing can be intimidating for new college graduates, but doing so will pay dividends for their financial health down the road.