Latest news with #DXCM
Business Insider
30-05-2025
- Business
- Business Insider
DexCom initiated with a Buy at Goldman Sachs
Goldman Sachs initiated coverage of DexCom (DXCM) with a Buy rating and $104 price target as part of a broader research note launching coverage on Diabetes Medical Technology. Diabetes technology is poised to sustain double-digit growth, and DexCom offers potential upside from consumer-related adoption and strong profitability leverage that should evidence through the balance of 2025, the analyst tells investors in a research note. The market also underappreciates the degree of P&L upside in DexCom model as gross margins scale, Goldman Sachs added. Confident Investing Starts Here:
Yahoo
28-05-2025
- Business
- Yahoo
Prediction: These 2 Stocks Will Beat the Market in the Next Decade
Eli Lilly and DexCom have been market-beaters over the past decade. Eli Lilly could ride the wave of a strong lineup and deep pipeline, especially in weight management. DexCom's devices are valuable to diabetes patients, but there's still a significant untapped opportunity. 10 stocks we like better than Eli Lilly › Investors typically want to beat the market over the long run. Though it's not an easy task, it certainly is possible with the right companies. Let's consider two corporations that could help you do better than average in the next decade: Eli Lilly (NYSE: LLY) and DexCom (NASDAQ: DXCM). Eli Lilly has been one of the best-performing pharmaceutical giants in the past 10 years. Though that doesn't guarantee future success, it's worth highlighting what has led to the company's strong showing. Lilly has made significant clinical breakthroughs in recent years, none more important than tirzepatide, a medicine sold as Mounjaro in treating diabetes, and Zepbound in managing weight. It was the first dual GLP-1/GIP agonist approved by the U.S. Food and Drug Administration. Here are two ways in which that's relevant to the company's future performance. First, tirzepatide hasn't been on the market that long, having earned approval about three years ago. It will continue delivering excellent top-line growth. Second, even more clinical successes like tirzepatide could help the stock perform well. Eli Lilly recently released positive data from a phase 3 clinical trial for orforglipron, an oral GLP-1 medicine; the strong results sent the stock price soaring. The drugmaker is also working on retatrutide, which mimics the action of not just two gut hormones (as tirzepatide does), but three. Lilly dubbed it "triple G." Retatrutide could be yet another breakthrough. In total, the company has 11 weight loss candidates in the pipeline. Even with mounting competition in this field, Eli Lilly looks like a runaway leader compared to any company not named Novo Nordisk. And that's before we mention the rest of the pipeline. Last year, Lilly earned approval for Kisunla in treating Alzheimer's disease, another significant win considering that very few medicines have gotten the green light from regulators in this area in the past 20 years. Lilly has not performed well in 2025 due to tariff-induced volatility, and disappointing bottom-line guidance for the full year. However, the company is pivoting its manufacturing back into the U.S., something it has been doing for years -- so even if President Donald Trump's trade agenda survives his administration, the drugmaker should be fine. And while the stock's forward price-to-earnings ratio of around 33 is around twice the average of 16 for the healthcare industry, the company's better-than-average results and excellent prospects justify its valuation. Eli Lilly is a terrific dividend stock. The company has increased its payouts by 200% over the past 10 years. And the stock should deliver superior returns through 2035, especially for shareholders who opt to reinvest the dividend. DexCom specializes in developing and marketing continuous glucose monitoring (CGM) systems that help diabetes patients keep track of their blood sugar levels. The company's appeal is the superiority of its devices compared to the alternatives. With blood glucose meters, patients use a painful finger prick (or something similar) to collect a small blood sample to know their measurement at that specific point in time. In contrast, once installed, CGMs constantly monitor their status, day and night, with measurements made up to every five minutes. That's 12 per hour and 288 per day -- no manual meter can match that. Strong adoption of the technology has been a massive tailwind for DexCom. Patients are switching to CGM, and third-party payers are increasingly reimbursing for it. This has resulted in growing revenue and earnings over the past decade, and a strong, if somewhat volatile, stock-market performance. Here's more good news: DexCom has consistently pointed out that the CGM market remains underpenetrated. In the U.S., the number of diabetes patients who use CGM is much lower than the number whose use would be covered by insurance. Furthermore, the company has routinely entered new markets to expand its addressable population. DexCom does have to deal with stiff competition from Abbott Laboratories, but has remained successful nonetheless. Abbott pointed out about 18 months ago that just 1% of diabetic adults worldwide had access to CGM. So there's space for multiple winners over the long run. And while tariffs could be a threat, DexCom does significant manufacturing for U.S. consumers domestically. Management expects minimal impact from tariffs. Lastly, though DexCom's recent forward P/E of around 42 looks high, it's not far from the lowest point it has seen in years: A high-growth stock, DexCom has generally traded at high premiums and has still performed better than the broader market. Its valuation won't kill momentum in the next decade. And in the meantime, the stock should once again deliver outsize returns as DexCom makes headway into the massive CGM market. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom and Novo Nordisk and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy. Prediction: These 2 Stocks Will Beat the Market in the Next Decade was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
DXCM Q1 Earnings Call: Coverage Expansion and Product Pipeline Shape 2025 Outlook
Medical device company DexCom (NASDAQ:DXCM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 12.5% year on year to $1.04 billion. The company expects the full year's revenue to be around $4.6 billion, close to analysts' estimates. Its non-GAAP profit of $0.32 per share was in line with analysts' consensus estimates. Is now the time to buy DXCM? Find out in our full research report (it's free). Revenue: $1.04 billion vs analyst estimates of $1.02 billion (12.5% year-on-year growth, 1.8% beat) Adjusted EPS: $0.32 vs analyst estimates of $0.33 (in line) Adjusted EBITDA: $230.4 million vs analyst estimates of $251.9 million (22.2% margin, 8.5% miss) The company reconfirmed its revenue guidance for the full year of $4.6 billion at the midpoint Operating Margin: 12.9%, up from 11% in the same quarter last year Free Cash Flow Margin: 9.3%, down from 16.5% in the same quarter last year Organic Revenue rose 13.8% year on year (24.8% in the same quarter last year) Market Capitalization: $33.93 billion DexCom's first quarter results reflected ongoing momentum in its core continuous glucose monitoring (CGM) business, with management attributing growth to expanded commercial reach, increased patient starts—particularly among type 2 non-insulin users—and new product enhancements. CEO Kevin Sayer cited record levels of new customer acquisition, driven by broadened prescriber activity and new payer access wins, as well as the recent launch of Stelo, DexCom's over-the-counter biosensor, and updates to the G7 platform. Looking forward, management underscored the importance of continued payer coverage expansion, particularly with all three major pharmacy benefit managers (PBMs) now committed to covering DexCom's G7 for wider patient populations. CFO Jereme Sylvain emphasized the company's focus on managing supply chain costs and margin pressures, while maintaining investment in product innovation and operational efficiency. Sayer stated, 'We believe we can continue to demonstrate our value time and time again,' highlighting DexCom's efforts to secure broader access, data-driven outcomes, and regulatory clearances. DexCom's management provided detailed context on the drivers of first quarter performance and addressed several business-critical developments impacting the outlook for 2025. Type 2 Diabetes Access Gains: Management emphasized that recent wins with large PBMs have accelerated adoption among type 2 non-insulin users. The company saw a notable uptick in new patient starts from this population, which is now a material portion of overall new additions. Stelo Launch and Uptake: The over-the-counter Stelo sensor, targeting type 2 diabetes, prediabetes, and wellness users, continues to attract new customers. Stelo's app enhancements and expanded distribution, including availability on Amazon, have driven over 200,000 downloads to date. 15-Day G7 System Clearance: DexCom secured FDA approval for a 15-day wear G7 sensor, increasing convenience and potentially improving margins. The product is slated for launch in the second half of the year, with work underway to ensure compatibility with insulin pumps and payer coverage. Operational and Supply Dynamics: The company navigated short-term supply constraints by expediting shipments and working closely with distribution partners. Management acknowledged incremental freight costs but confirmed that manufacturing output and product quality have stabilized. FDA Warning Letter Response: DexCom addressed an FDA warning letter received in March, implementing corrective process controls without impacting new product approvals or ongoing distribution. Management expects to resolve outstanding issues while continuing to prioritize innovation. Management's outlook for 2025 centers on broadening access for DexCom's CGM products, scaling adoption among type 2 diabetes patients, and improving operational efficiency amid cost pressures. Broader Payer Coverage: Coverage expansion among major PBMs is expected to drive growth in the type 2 non-insulin segment, unlocking a larger addressable market and supporting continued high rates of new patient acquisition. Product Pipeline Execution: The upcoming launch of the 15-day G7 sensor and ongoing software enhancements—such as Stelo app updates and integration with third-party wellness platforms—are positioned to support retention, differentiation, and margin improvement over time. Margin Management and Cost Controls: Management highlighted ongoing programs to offset elevated freight costs and inflationary pressures, including leveraging prior investments in automation, AI, and sales force expansion. The ability to balance investment with efficiency is seen as key to maintaining operating margins despite external headwinds. Matt Taylor (Jefferies): Asked about the closure of the gap between volume and revenue growth. Management confirmed inventory normalization and record new patient starts, indicating that volume growth remains robust and consistent with earlier trends. Larry Biegelsen (Wells Fargo): Questioned why full-year guidance was unchanged despite strong Q1 organic growth. CFO Jereme Sylvain said it was too early to adjust guidance after one quarter, emphasizing a commitment to deliver on full-year targets. Danielle Antalffy (UBS): Sought insight on DexCom's resilience in a potential recession. Management cited strong payer coverage and the cost-saving value of CGM to health systems, expressing confidence in the company's positioning relative to peers. Jeff Johnson (Baird): Inquired about gross margin cadence and whether manufacturing issues persisted. Management stated margin improvement is expected later in the year and indicated that manufacturing output and quality are on track, with no ongoing process issues. Jayson Bedford (Raymond James): Probed on international revenue softness and supply dynamics. Management noted localized strength in Japan and France but acknowledged timing variability in international coverage wins, resulting in some quarterly choppiness. Looking ahead, the StockStory team will monitor (1) execution of the 15-day G7 system launch and its adoption rates, (2) continued expansion of coverage for type 2 non-insulin diabetes patients among payers, and (3) the pace at which supply chain costs normalize and margins recover. Additional signposts include data readouts from the type 2 diabetes randomized controlled trial and further growth in Stelo's user base. DexCom currently trades at a forward P/E ratio of 40×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
5 High-Flying Medical Instrument Stocks to Buy Despite Recent Turmoil
The medical instruments industry is currently undergoing a transformative phase, thanks to the rapid adoption of generative artificial intelligence (genAI) and digital therapeutics, which market watchers expect will take the healthcare industry by storm. Since the beginning of 2023, the industry has been witnessing mass adoption of AI and the Internet of Medical Things in the form of digital healthcare options in hospitals and other healthcare settings. GenAI has begun to showcase its proficiency across a range of healthcare fields, from time-consuming administrative tasks to critical areas such as technological discovery and clinical trials. GenAI, while analyzing vast and complex genetic and molecular data, is expected to help healthcare reach new heights in terms of predictive treatment options and smart hospital systems. At this stage, it should be prudent to invest in stocks from the Zacks-defined Medical Instrument industry with a favorable Zacks Rank. We have selected five such stocks that have provided double-digit returns in the past month during which Wall Street suffered severe volatility. These stocks are: DexCom Inc. DXCM, IDEXX Laboratories Inc. IDXX, NeuroPace Inc. NPCE, Fresenius Medical Care AG FMS and ClearPoint Neuro Inc. CLPT. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research DexCom has benefited from an impressive contribution from the Sensor segment and domestic and international revenue growth have acted as the key catalysts. DXCM's prospects with Stelo as an OTC monitor for type 2 diabetes bode well. DXCM made continued advancements concerning key strategic objectives and ended the quarter with new patient additions. DXCM's slew of tie-ups with AID systems is encouraging. A solid international foothold and robust product portfolio augur well. A strong solvency position is an added plus. DexCom has an expected revenue and earnings growth rate of 14.3% and 23.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. IDEXX Laboratories' robust strategic execution is highlighted by new business gains, high customer retention levels and solid net price realization. This underscores the consistent growth in the CAG international business, supported by volume gains and global premium instrument placements. IDXX's software solutions are facilitating growth by enhancing clinic workflows and promoting greater utilization of diagnostics. Also, the consumable business boosts IDXX's top line. IDXX is focused on growing its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. IDEXX Laboratories has an expected revenue and earnings growth rate of 5.8% and 14%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last seven days. NeuroPace operates as a medical device company in the United States. NPCE develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating drug-resistant focal epilepsy. NPCE's RNS System includes RNS neurostimulator, cortical strip and depth leads, and Patient Remote Monitor, as well as other implantable and non-implantable accessories. In addition, NPCE provides physician tablet and patient data management system; and nSight Platform, which facilitates ongoing patient monitoring and streamlines patient support. NPCE sells its products to hospital facilities for initial RNS System implant procedures and for replacement procedures. NeuroPace has an expected revenue and earnings growth rate of 18.1% and 15.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.2% over the last 60 days. Fresenius Medical Care has been benefiting from strong organic growth on the back of improving treatment volumes as well as a stabilizing labor environment in the United States. Continued improvement in these two key factors should be beneficial for FMS in 2025. Overall pricing momentum also supported growth in the Care Enablement segment. FMS' newly implemented operating model led to operational improvements. FMS generated 221 million euros in savings in 2024 by implementing initiatives under the FME25 transformation program. FMS' continued divestment of its noncore and dilutive assets seems promising. Fresenius Medical Care has an expected revenue and earnings growth rate of 1.6% and 28.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last seven days. ClearPoint Neuro operates as a medical device company primarily in the United States. CLPT develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. CLPT offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. ClearPoint Neuro has an expected revenue and earnings growth rate of 24.1% and 11.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report ClearPoint Neuro, Inc. (CLPT) : Free Stock Analysis Report NeuroPace, Inc. (NPCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
13-05-2025
- Business
- Business Wire
Dexcom Announces Promotion of Jake Leach to the Expanded Role of President and COO
SAN DIEGO--(BUSINESS WIRE)-- DexCom, Inc. (NASDAQ: DXCM), the global leader in real-time continuous glucose biosensing, today announced the promotion of Jake Leach to president, in addition to his current role as chief operating officer, which he has held since 2022. With more than 21 years of leadership experience at Dexcom, Mr. Leach helped steer the company's biosensing platforms since the launch of its first commercial system. In his chief operating officer role, he provides end-to-end responsibility for product development at Dexcom as well as oversight of executive leadership functions, including global operations, research and development, quality management, regulatory and medical affairs. In his role as president, Mr. Leach will take on the additional responsibility of oversight of Dexcom's corporate development and strategy efforts. 'My confidence in Dexcom's future opportunities and the quality of our leadership have never been greater,' said Kevin Sayer, chairman and chief executive officer. 'Jake has strengthened the company's ability to innovate and achieve ambitious goals that will benefit the future of metabolic health. I have no doubt that he will build upon these accomplishments with his promotion to president.' 'There are few companies in the world with an opportunity to address the greatest challenges in global health while simultaneously benefiting our customers, shareholders and communities,' said Mr. Leach. 'Taking on the role of president at this moment in our company's history is incredibly exciting and I look forward to working with Kevin to lead Dexcom into a bright future.' About DexCom, Inc. Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently. Dexcom. Discover what you're made of. For more information, visit Category: IR
