Why DexCom Stock Is Trading Lower Friday

DexCom, Inc. DXCM shares are moving lower Friday after the company reported worse-than-expected second quarter revenue and issued weak guidance.

What Happened: DexCom reported 2024 fiscal year second quarter earnings after the market closed on Thursday. The company reported adjusted EPS of 43 cents beating analyst estimates of 39 cents.

DexCom also reported quarterly revenue of $1.04 billion missing analyst estimates of $1.36 billion. This figure represents a 15% year-over-year growth.

As for guidance, DexCom sees third quarter revenue between $975 million and $1 billion versus analyst estimates of $1.15 billion. Dexcom sees revenue for the 2024 fiscal year between $4 billion and $4.05 billion versus analyst estimates of $4.33 billion.

Dexcom included several highlights from the second quarter in its earnings report, including securing coverage for Dexcom ONE in France for certain people with type 2 diabetes and it launched Direct-to-Watch in the U.S. and several other markets worldwide.

“While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,” said Kevin Sayer, Dexcom’s chairman, president and CEO.

“We have a unique opportunity to serve millions of more customers around the world with our differentiated product portfolio and we are taking action to improve our execution and best position ourselves for continued long-term growth.”

Analyst Changes: Following the earnings report, multiple analysts issued price target changes.

• JP Morgan analyst Robbie Marcus downgrades DexCom from Overweight to Neutral and lowers the price target from $145 to $75.
• Canaccord Genuity analyst William Plovanic maintains DexCom with a Buy and lowers the price target from $145 to $89.
• Wells Fargo analyst Larry Biegelsen maintains DexCom with a Overweight and lowers the price target from $145 to $80.
• RBC Capital analyst Shagun Singh maintains DexCom with a Outperform and lowers the price target from $165 to $145.
• Piper Sandler analyst Matt O’Brien maintains DexCom with a Overweight and lowers the price target from $150 to $90.

See Also: What’s Going On With Tivic Health Stock?

DXCM Price Action: At the time of writing, DexCom stock is trading 40.2% lower at $64.45 per data from Benzinga Pro.

Image: Courtesy of DexCom