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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Forget FIRE: Why ‘FILE’ Is the Smarter Move for Child-Free DINKsHow shifting from "Retiring Early" to "Living Early" allows child-free adults to enjoy their wealth while they’re still young enough to use it.
-
7 Tax Blunders to Avoid in Your First Year of RetirementA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing LandscapeNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial Planner
A business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial Professional
Not understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
6 Overlooked Areas That Can Make or Break Your Retirement, From a Retirement AdviserIf you're heading into retirement with scattered and uncertain plans, distilling them into these six areas can ensure you thrive in later life.
-
I'm a Wealth Adviser: These Are the 7 Risks Your Retirement Plan Should AddressYour retirement needs to be able to withstand several major threats, including inflation, longevity, long-term care costs, market swings and more.
-
Stocks Struggle for Gains to Start 2026: Stock Market TodayIt's not quite the end of the world as we know it, but Warren Buffett is no longer the CEO of Berkshire Hathaway.
-
How New Investors Can Pick Their Perfect Portfolio, According to a ProSee what Cullen Roche has to say about finding your perfect portfolio as a new investor and his two-word answer on where he thinks the stock market is headed in 2026.
-
High-Net-Worth Retirees: Don't Overlook These Benefits of Social SecurityWealthy retirees often overlook Social Security. But timed properly, it can drive tax efficiency, keep Medicare costs in check and strengthen your legacy.
-
Do You Have an Insurance Coverage Gap for Your Valuables? You May Be Surprised to Learn You DoStandard homeowners insurance usually has strict limits on high-value items, so you should formally "schedule" these valuable possessions with your insurer.
