DexCom Analysts Boost Forecasts After Strong Q4 Results

DexCom, Inc. (DXCM) reported stronger-than-expected earnings for its fourth quarter on Thursday, leading analysts to increase their forecasts for the company. The continuous glucose monitoring (CGM) specialist posted quarterly earnings of 45 cents per share, missing the analyst consensus estimate of 50 cents. However, the company's revenue of $1.140 billion beat the consensus estimate of $1.104 billion. Kevin Sayer, DexCom's chairman, president, and CEO, attributed the company's performance to its largest US commercial sales force expansion, two major product launches, and the submission of its G7 15-day product to the FDA.

DexCom's revenue grew 8% year-over-year to $1.140 billion, with U.S. revenue up 4% and international revenue up 17% on a reported basis. The company's adjusted gross profit margin decreased by 480 basis points year-over-year to 59.4%, and its adjusted operating margin contracted by 470 basis points Y/Y to 18.8%. Despite these contractions, analysts have raised their price targets and maintained their positive ratings on the stock.

Morgan Stanley analyst Patrick Wood maintained DexCom with an Equal-Weight rating and raised the price target from $75 to $82. Canaccord Genuity analyst William Plovanic maintained the stock with a Buy rating and raised the price target from $99 to $103. These analysts' actions reflect their confidence in DexCom's long-term growth prospects and the company's ability to execute on its strategic initiatives.