DexCom Shares Soar, Leading the Top Gainers in the S&P 500 Index
DexCom Stock High Flyer on Strong Q1, Buyback Announcement
The stock of DexCom, the maker of glucose monitoring devices for diabetes patients, soared over 15% on Friday, cementing its position as one of the top gainers in the S&P 500. The surge followed DexCom's impressive quarterly results and a significant investment in its own shares.
Unveiling its quarterly report after the market closed on Thursday, DexCom reported a 12% year-over-year increase in Q1 revenue to $1.04 billion, surpassing analyst estimates of $1.02 billion. However, adjusted earnings per share fell short by a penny, marking 32 cents.
Despite the minor earnings miss, DexCom affirmed its full-year outlook, forecasting revenue of $4.6 billion, an approximate 21% non-GAAP operating margin, and around a 30% adjusted EBITDA margin. Interestingly, the company adjusted its 2025 gross profit margin projection to approximately 62% due to costs associated with supply chain dynamics.
Friday's rally propelled DexCom's shares into positive territory for 2022, albeit slightly below the average analyst price target of $98, as per Visible Alpha.
Looking deeper, DexCom's 2025 financial outlook showcases promising revenue growth, albeit with margin pressures, as the company extends its product range. Key aspects of this outlook include:
- Revenue Outlook: DexCom aims for $4.6 billion in revenue in 2025, equivalent to a 14% year-over-year growth. Q1 2025 revenue already stood at $1.036 billion, driven by a 14% organic growth, with U.S. sales up 15% and international markets up 12%.
- Margin Guidance: While gross profit margin has been revised downward to around 62% non-GAAP, the operating margin is projected at approximately 21% non-GAAP, and the adjusted EBITDA margin is expected at around 30%.
- Operational Highlights: FDA clearance for the 15-day Dexcom G7 and the growing adoption of Stelo, its over-the-counter continuous glucose monitor, contribute to product expansion. DexCom's financial standing is further strengthened by a $2.6 billion debt and a $32 billion market cap, as of May 2025.
In addition, DexCom announced a new $750 million share repurchase program after Q1 results. Despite the margin compression, DexCom anticipates growth from broader insurance coverage for type 2 patients and new product launches, easing margin pressures and boosting revenue.
If you're keen on investing in DexCom's soaring stock or other trading opportunities, Pepperstone might help you with CFDs and other financial instruments. Join now.
- DexCom's 2025 projections include a 14% year-over-year growth in revenue, with the Q1 2025 revenue standing at $1.036 billion.
- The operational highlights for DexCom in 2025 include the FDA clearance for the 15-day Dexcom G7 and the growing adoption of Stelo, its over-the-counter continuous glucose monitor.
- DexCom's financial position is further strengthened by a $2.6 billion debt and a $32 billion market cap, as of May 2025.
- After Q1 results, DexCom announced a new $750 million share repurchase program to invest in its own shares.
- For those interested in investing in DexCom's stock or other trading opportunities, Pepperstone might be helpful with CFDs and other financial instruments. You can join Pepperstone now.
