DexCom stock movement
The stock of DexCom (DXCM), the leading pure-play diabetes medtech player, has risen ~150%, from $57.99 on January 2, 2018, to $143.48 on September 7, 2018. In the second quarter, it reported revenues of $242.5 million, a YoY (year-over-year) rise of 42.1%. It beat Wall Street’s consensus revenue and EPS estimates by $36.8 million and $0.08, respectively. It reported a 35% YoY rise in revenues for the US market, while sales outside the United States rose 78% YoY in Q2 2018.
In the second quarter, DexCom reported YoY revenue growth that was significantly higher than what the company projected for 2018. It had previously anticipated YoY revenue growth of 15%–20% for 2018. Based on the company’s robust sales in the first half of 2018, DexCom has revised its guidance and now expects total revenues of $925 million in 2018, which implies a YoY revenue growth rate of 29%. The increasing awareness and rising demand for continuous glucose monitoring (or CGM) systems around the world have been driving up its revenue growth for 2018.
Analyst recommendations for DexCom
The overall analyst sentiment for DexCom as of September 10 is the same as the previous month. The consensus recommendation over the next 12 months is a “buy.”
Of the 19 analysts covering DexCom in September, eight have recommended a “strong buy” for the stock, six have recommended a “buy,” three have recommended a “hold,” and two have recommended a “sell.”
Wall Street analysts have projected a 12-month consensus target price for DexCom of $129.68, which would be a 9.6% decline over its closing price on September 7.
In the next part, we’ll look at the growth trends for Glaukos.