DexCom Stock Up Following Strong Preliminary Q4 Results & 2025 Outlook

Core Insights - DexCom, Inc. reported strong preliminary results for Q4 and full-year 2024, with stock rising 2.7% on January 13, 2025 [1] - The company achieved total revenues of at least $1.11 billion for Q4 2024, an 8$1.10 billion [1][2] - For the full year 2024, revenues are estimated at approximately $4.03 billion, reflecting an 11$4.02 billion [3] Revenue Breakdown - U.S. revenues reached approximately $803 million, a 4$310 million [2] - The gross margin faced challenges due to a non-cash charge from inventory damage and production inefficiencies [2] Profitability and Margins - The company anticipates adjusted gross profit and operating margin of approximately 62% and 19% for the full year 2024, indicating resilience amid challenges [4] - For 2025, DexCom projects adjusted gross profit margin between 64% to 65% and an improved adjusted operating margin of approximately 21% [5] Future Outlook - DexCom provided an optimistic revenue outlook for 2025, projecting total revenues of $4.60 billion, representing an estimated growth of 14% over 2024 [5] - Growth drivers include increased sensor volume, ongoing international expansion, and the rollout of the new product, Stelo [5][6] - The company is focused on strategic investments and innovation to strengthen its leadership in the diabetes management solutions market [6] Stock Performance - DexCom's shares have declined 11.8% over the past three months, contrasting with a 15.6% rise in the industry and a 5.9% growth in the S&P 500 [7]