The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how patient monitoring stocks fared in Q4, starting with DexCom (NASDAQ:DXCM).
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 a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Slowest Q4: DexCom (NASDAQ:DXCM)
Founded in 1999 to address the demand for non-invasive diabetes treatments, DexCom (NASDAQ:DXCM) is a medical technology company known for its glucose monitoring systems for people with diabetes.DexCom reported revenues of $1.11 billion, up 7.6% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
DexCom delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Interestingly, the stock is up 6.6% since reporting and currently trades at $89.60.
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Best Q4: Insulet (NASDAQ:PODD)
Founded in 2000, Insulet Corporation (NASDAQ:PODD) designs and manufactures insulin delivery systems, with a focus on improving diabetes management through its Omnipod platform.Insulet reported revenues of $597.5 million, up 17.2% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with an impressive beat of analysts’ constant currency revenue and EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.4% since reporting. It currently trades at $267.
Masimo (NASDAQ:MASI)
Founded in 1989, Masimo Corporation (NASDAQ:MASI) develops and manufactures medical devices, with a focus on noninvasive monitoring technologies.Masimo reported revenues of $600.7 million, up 9.4% year on year, exceeding analysts’ expectations by 1.5%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EPS estimates and full-year operating income guidance exceeding analysts’ expectations.
Interestingly, the stock is up 10.6% since the results and currently trades at $187.01.
ResMed (NYSE:RMD)
Founded in 1989 in Australia, ResMed (NYSE:RMD) is a medical device company specializing in products for chronic health conditions like sleep apnea, asthma, neuromuscular disorders, and others.ResMed reported revenues of $1.28 billion, up 10.3% year on year. This print beat analysts’ expectations by 1%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 8.9% since reporting and currently trades at $234.61.
iRhythm (NASDAQ:IRTC)
Founded in 2006, iRhythm Technologies (NASDAQ:IRTC) develops and markets wearable cardiac monitoring devices, focusing on diagnosing and managing heart arrhythmias (irregular heartbeats).iRhythm reported revenues of $164.3 million, up 24% year on year. This result surpassed analysts’ expectations by 3.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
iRhythm delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 1.8% since reporting and currently trades at $110.42.
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This content was originally published on Stock Story
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