- Continuous glucose monitor developer Dexcom Inc DXCM shares ticked up as second-quarter results easily topped the consensus forecast; adjusted EPS of 0.76 beat the consensus of $0.45.
- Sales increased 32% Y/Y $595.1 million, well ahead of the estimate of $551.3 million. Dexcom's biggest storyline is the expected launch of its next-generation G7 device. It has filed for the European CE mark and expects a European launch later this year, but news has been quiet regarding FDA approval and a U.S. launch.
- Outlook: Based on its strong second quarter, Dexcom said it is increasing its guidance for 2021: It expects revenue of $2.35 billion - $2.4 billion.
- Analyst Take on Earnings: Piper Sandler raised the price target to $550 from $500, with an Overweight rating unchanged.
- The new guidance range is "readily beatable," assuming that the delta variant is not too impactful, says analyst Matt O'Brien.
- Baird increased the price target to $520 from $460 and an Outperform rating.
- The analyst remains bullish, and the company has moved up a few notches on "the best growth story in MedTech" list.
- The price target at Stephens also increased to $546 from $468, with an Overweight rating as he raised his 2021 and 2022 estimates.
- Oppenheimer too beefed up the price target to $525 from $500, and Outperform rating unchanged.
- SVB Leerink also increased the price target to $500 from $485. DexCom doubled the prescribing physician base and delivered nearly 18% global sequential sales growth, nearly 2x faster than competitor Abbott's Libre, says the analyst.
- Canaccord moved the price target higher to $500 from $455 and kept a Buy rating.
- Raymond James moved the target higher to $515 from $466 and kept an Outperform, saying Dexcom "not only cleared the bar but also did so with some flair."
- Price Action: DXCM shares are up 11.80% at $509.99 during the market session on the last check Friday.
- Photo by Company
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