Shares of DexCom (NASDAQ:DXCM) gained in pre-market trading after the manufacturer of glucose monitoring systems for diabetes management reported earnings for its third quarter of Fiscal Year 2023. The company reported adjusted earnings of $0.50 per share compared to $0.28 per share in the same period last year, which beat analysts’ consensus estimate of $0.34 per share.
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The company’s revenues increased by 27% year-over-year to $975 million, surpassing analysts’ expectations of $939.6 million. DexCom also announced a share repurchase program worth $500 million.
Considering the strong Q3 results, management raised its FY23 revenue guidance and now expects revenues in the range of $3.58 billion to $3.6 billion, up by 23% to 24% year-over-year. In addition, adjusted operating margin is likely to be 19%.
Is DXCM a Buy, Sell, or Hold?
Analysts are bullish about DXCM stock with a Strong Buy consensus rating based on 16 Buys and two Holds. The average DXCM price target of $131.11 implies an upside potential of 61.7% at current levels.
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