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Valued at a market cap of $25.5 billion, DexCom, Inc. (DXCM) is a medical device company that designs, develops, and commercializes continuous glucose monitoring (CGM) systems. The San Diego, California-based company’s products help patients, caregivers, and healthcare professionals manage diabetes and broader metabolic health conditions in real time. It is expected to announce its fiscal Q3 earnings for 2025 after the market closes on Thursday, Oct. 30.
Before this event, analysts expect this medical device company to report a profit of $0.57 per share, up 26.7% from $0.45 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $0.48 per share in the previous quarter topped the consensus estimates by 6.7%.
For fiscal 2025, analysts expect DexCom to report a profit of $2.04 per share, up 24.4% from $1.64 per share in fiscal 2024. Its EPS is expected to further grow 25.5% year-over-year to $2.56 in fiscal 2026.
Shares of DexCom have declined 4.7% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 14.2% return over the same time frame. However, it has outpaced the Health Care Select Sector SPDR Fund’s (XLV) 7.5% downtick over the same time period.
DexCom delivered better-than-expected Q2 results on Jul. 30. The company’s overall revenue increased 15.2% year-over-year to $1.2 billion, surpassing consensus estimates by 3.6%. Moreover, on the earnings front, its adjusted EPS of $0.48 improved 11.6% from the year-ago quarter, coming in 6.7% ahead of analyst estimates. Yet, its shares plunged 9.3% in the following trading session.
Wall Street analysts are highly optimistic about DexCom’s stock, with a "Strong Buy" rating overall. Among 27 analysts covering the stock, 20 recommend "Strong Buy," one indicates a "Moderate Buy," and six suggest "Hold.” The mean price target for DXCM is $100.24, indicating a 52.5% potential upside from the current levels.
