Company Reports

DexCom's second-quarter results included solid 11% year-over-year growth in US revenue, while international sales rose more strongly at 16% in constant currency.

DexCom's first-quarter results included constant-currency revenue growth of 12% to $1.19 billion, as well as adjusted operating income of 22%, up 840 basis points from the prior-year period.

DexCom has a well-established record of introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, DexCom has captured an impressive slice of the CGM market, despite a recent wave of innovation in diabetes devices that has intensified competitive pressure. DexCom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

DexCom delivered fourth-quarter performance that included revenue growth of 13% and operating profit improvement of 71%, driven by lower manufacturing costs and tight control over operating expenses.

DexCom has a well-established record of introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, DexCom has captured an impressive slice of the CGM market, despite a recent wave of innovation in diabetes devices that has intensified competitive pressure. DexCom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

Dexcom posted third-quarter results that featured 22% revenue growth and nearly 500 basis points of operating margin improvement year over year. But, quality issues with G7 caused shares to swoon 13% in after-market trading Oct. 30.

DexCom delivered second-quarter top- and bottom-line growth of 15% and 25%, respectively, supported by greater adoption of continuous glucose monitors.

Dexcom reported quarterly top-line growth of 14% (in constant currency) year over year. However, gross margin remained under pressure thanks to seasonality and the need to rebuild inventory.

DexCom has a well-established record of introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, DexCom has captured an impressive slice of the CGM market, despite a recent wave of innovation in diabetes devices that has intensified competitive pressure. DexCom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

Despite intensive medtech industry lobbying to secure a carve-out from the Trump administration’s expansive tariffs on all countries, medical devices have been swept up in the tariff net.

Dexcom delivered 8% quarterly revenue growth, but several one-time expenses, including tax adjustments and intellectual property litigation, drove earnings down 40%.

Dexcom posted another disappointing set of results for its third quarter, featuring anemic 2% reported revenue growth, as it seeks to commercialize its new Stelo product and navigate distribution channels.

We take another look at Dexcom, as the reimbursement environment has brightened, new diabetes patient pools offer upside, and the firm has amped up its innovation.

Dexcom enjoys a well-established track record for introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, Dexcom has captured an impressive slice of this CGM market, despite a recent wave of innovation in the diabetes device market that has intensified competitive pressure. Dexcom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

Through the confluence of several factors, no-moat Dexcom ran into a wall in the second quarter with disappointing results that significantly lowered its outlook. While we’ve lowered our fair value estimate to $94 per share, down from $105, to reflect operational issues that we suspect will need some time to work out, the market reaction driving shares down over 30% in premarket trading looks like an overreaction to us. This near-term turbulence notwithstanding, underlying demand for continuous glucose monitors, or CGMs, and Dexcom’s reputation for superior accuracy haven’t changed, which leaves us comfortable that the firm can get back on track as it irons out execution issues.

Dexcom enjoys a well-established track record for introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, Dexcom has captured an impressive slice of this CGM market, but a recent wave of innovation in the diabetes device market has intensified competitive pressure. Nonetheless, Dexcom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

No-moat Dexcom posted first-quarter results that are consistent with our full-year expectations, and we're leaving our $105 fair value estimate unchanged. Quarterly sales in the US and international markets rose 24% year over year—a fast start that led to management raising the bottom end of its revenue outlook. However, our projection for $4.34 billion of full-year sales remains at the high end of management's expectations. During the first quarter, Dexcom made further progress on key initiatives that we think can support the long-term growth of this firm.

Dexcom’s strong fourth-quarter performance wrapped up a solid year that slightly exceeded our expectations. However, our mild adjustments weren’t enough to shift our $105 fair value estimate. Organic quarterly revenue rose 26%, and Dexcom’s full-year 24% sales growth hit our estimate on the nose. The firm also eked out roughly 90 basis points of combined improvement in costs of goods sold and sales and marketing expenses. Our estimate for $3.4 billion in revenue for 2024 is on the high side of management’s outlook, which we think is supported by the recent expansion in Type 2 reimbursement and Dexcom’s continuous glucose monitor, or CGM, pipeline. With its business growing in size and scope, as well as heightened competition from Abbott, this year could be an inflection point with implications for Dexcom’s no-moat status. If the firm can successfully fend off competition, we may revisit our thinking on Dexcom’s moat.

Dexcom enjoys a well-established track record for introducing the most precise sensors for use in its continuous glucose monitors. On the strength of its technology, Dexcom has captured an impressive slice of this CGM market, but a recent wave of innovation in the diabetes device market has intensified competitive pressure. Nonetheless, Dexcom has done a credible job of adapting and fending off competition from Abbott and Medtronic.

No-moat Dexcom delivered a stellar quarter that reflected ongoing strength in its U.S. launch of G7 and displayed discipline on cost containment. At first blush, we expect to moderately raise our fair value estimate based on more optimistic longer-term adoption assumptions supported by the potential of new markets for Dexcom’s continuous glucose monitors. We also plan to give a minor boost to our full-year projections on this recent strength from G7 and strong performance in international markets. However, the effect of this near-term tinkering is likely to be small compared with our longer-term changes since our discounted cash flow model accounts for cash flows across multiple years.