Overview
- DexCom shares are down about 25% this year and have fallen to levels last seen in 2020, compressing the forward P/E to roughly 26.
- Third-quarter revenue reached about $1.2 billion, up roughly 22% year over year, with adjusted EPS of $0.61, up 35.6%.
- The FDA issued a warning letter over unapproved device changes and announced a Class I recall for certain CGM receivers.
- Several law firms have filed class-action suits alleging false advertising and device malfunctions tied to DexCom’s CGM systems.
- DexCom estimates it still added tens of thousands of new customers in Q3, while the average analyst price target of $87 suggests sizable upside from current levels.