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.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
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
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market Today
The S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
