DexCom Shares Hit All-time High, Up Over 100% Year-to-Date

Shares of medical device company DexCom Inc. (DXCM) closed at an all-time high of $440.50 yesterday, and that reflects a gain of over 100 percent year-to-date.

DexCom is a maker of continuous glucose monitoring (CGM) systems like DexCom G6, DexCom G6 Pro, DexCom G5 Mobile, and DexCom G4 PLATINUM that help people to take control of diabetes. The Company’s current target market consists primarily of people with Type 1 and Type 2 diabetes who utilize insulin pump therapy or who utilize multiple daily insulin injections.

The Company’s first product to be commercialized was the STS Continuous Glucose Monitoring System, and it was launched in the year 2006. Over the years, DexCom has launched a number of innovative products for continuous glucose monitoring, all of which are being well received by customers.

In 2006, the year in which DexCom became a commercial-stage company, its revenue was just $2.17 million. Since then, in each subsequent year, revenue has significantly increased, and in 2018, for the first time, passed the billion-dollar revenue mark.

The Company’s revenue was $1.03 billion in 2018, and it further increased to $1.48 billion in 2019. Moreover, 2019 also marked the first full year of GAAP profitability, wherein the net income was $101.1 million or $1.10 per share compared to a net loss of $127.1 million or $1.44 per share in 2018.

In the first quarter ended March 30, 2020, revenue was $405.1 million, up 44% over the year-ago quarter. At the time of reporting Q1 results, citing uncertainties related to the COVID-19 pandemic, the Company temporarily suspended the 2020 guidance that it had issued in February.

The financial results for the second quarter of 2020 are scheduled to be reported on July 28, 2020. Analysts polled by Thomson Reuters are expecting earnings of $0.34 per share and revenue of $415.39 million for the quarter.

Will DexCom’s Q2 results meet or beat analysts’ estimates and will the Company reinstate guidance with its earnings announcement?

The stock is regularly covered by and the last time we alerted readers to it was on February 19, 2020, when it was trading around $298. (Stock Alert: DexCom Touches New High)

DXCM has traded in a range of $138.28 to $445.52 in the last 1 year. The stock closed Thursday’s trading at $440.50, up 1.24%.

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