Q2 Earnings Roundup: DexCom (NASDAQ:DXCM) And The Rest Of The Patient Monitoring Segment

Let’s dig into the relative performance of DexCom (NASDAQ:DXCM) and its peers as we unravel the now-completed Q2 patient monitoring earnings season.

Patient monitoring companies within the healthcare equipment industry offer devices and technologies that track chronic conditions and support real-time health management, such as continuous glucose monitors (CGMs) and sleep apnea machines. These businesses benefit from recurring revenue from consumables and software subscriptions tied to device sales (razor, razor blade model). The rising prevalence of chronic diseases like diabetes and respiratory disorders due to an aging population as well as growing adoption of digitization are good for the industry. However, these companies face challenges from high R&D costs and reliance on regulatory approvals. Looking ahead, the sector is positioned for growth due to tailwinds like the rising burden of chronic diseases from an aging population, the shift toward value-based care, and increased adoption of digital health solutions. Innovations in AI and machine learning are expected to enhance device accuracy and functionality, improving patient outcomes and driving demand. However, there are headwinds such as pricing pressures as healthcare costs are a key focus, especially in the US. An evolving regulatory landscape and competition from more tech-forward new entrants could present additional challenges.

The 5 patient monitoring stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 1.1% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

DexCom (NASDAQ:DXCM)

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

DexCom reported revenues of $1.16 billion, up 15.2% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

DexCom delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 26.9% since reporting and currently trades at $65.17.

We think DexCom is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q2: iRhythm (NASDAQ:IRTC)

Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.

iRhythm reported revenues of $186.7 million, up 26.1% year on year, outperforming analysts’ expectations by 7.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

iRhythm delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 26.5% since reporting. It currently trades at $177.37.

Is now the time to buy iRhythm? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q2: ResMed (NYSE:RMD)

Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.

ResMed reported revenues of $1.35 billion, up 10.2% year on year, exceeding analysts’ expectations by 1.3%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a narrow beat of analysts’ revenue and constant currency revenue estimates.

The stock is flat since the results and currently trades at $270.47.

Read our full analysis of ResMed’s results here.

Insulet (NASDAQ:PODD)

Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.

Insulet reported revenues of $649.1 million, up 32.9% year on year. This print beat analysts’ expectations by 5.8%. Overall, it was an incredible quarter as it also produced an impressive beat of analysts’ constant currency revenue and EPS estimates.

Insulet delivered the fastest revenue growth among its peers. The stock is up 13.6% since reporting and currently trades at $315.02.

Read our full, actionable report on Insulet here, it’s free for active Edge members.

Masimo (NASDAQ:MASI)

Founded in 1989 to solve the "unsolvable problem" of accurate pulse oximetry during patient movement, Masimo (NASDAQ:MASI) develops and manufactures noninvasive patient monitoring technologies, including its breakthrough pulse oximetry systems that accurately measure blood oxygen levels even during patient movement.

Masimo reported revenues of $370.9 million, up 7.9% year on year. This result topped analysts’ expectations by 0.6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Masimo scored the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 9.9% since reporting and currently trades at $148.01.

Read our full, actionable report on Masimo here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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