Selected stock price target news of the day - July 29th, 2024

By: Matthew Otto

Dexcom Falls Short on Revenue; Revises Guidance and Initiates $750 Million Share Buyback Program

Dexcom reported its second quarter 2024 earnings, revealing an earnings per share of $0.43, surpassing analyst expectations of $0.39 by $0.04. Revenue reported came in at $1 billion, which, although a 15% increase from the previous year’s $871.3 million, fell short of the consensus estimate of $1.04 billion.

Dexcom’s performance was influenced by several factors, including a realignment of the U.S. sales force, lower-than-expected new customer starts, and reduced revenue per customer. U.S. revenue, which grew 19% to $732 million, was impacted by changes in rebate eligibility and channel mix, specifically the growth in the pharmacy business and lagging performance in the durable medical equipment (DME) channel. Internationally, Dexcom reported a 7% revenue increase to $272 million, with organic revenue growth of 10%, though this was lower than anticipated due to market dynamics and geographic variations.

In response to these challenges, Dexcom adjusted its guidance, forecasting third quarter revenue between $975 million and $1 billion, below the consensus of $1.151 billion. For the full fiscal year 2024, Dexcom now expects revenue between $4 billion and $4.05 billion, down from the previous forecast of $4.20 billion to $4.35 billion and below the consensus estimate of $4.333 billion. Despite the lowered guidance, Dexcom announced a $750 million share repurchase program, signaling confidence in its long-term prospects.

Despite the disappointing results, analysts from William Blair and Leerink expressed confidence in Dexcom’s long-term prospects, suggesting that the current setbacks are likely transient. The upcoming launch of Stelo, an over-the-counter CGM for Type 2 diabetes patients not using insulin, set for August, is anticipated to contribute positively to future growth.

Mixed Analyst Ratings Following Q2 Earnings Report

BTIG analyst Marie Thibault maintained a Buy rating while lowering the price target from $156 to $120.
Morgan Stanley analyst Patrick Wood maintained an Equal-Weight rating and reduced the price target from $120 to $75.
Oppenheimer analyst Steven Lichtman reiterated an Outperform rating and lowered the price target from $150 to $115.
UBS analyst Danielle Antalffy kept a Buy rating while decreasing the price target from $163 to $95.
Stifel analyst Mathew Blackman held a Buy rating yet adjusted the price target from $132 to $90.
Piper Sandler analyst Matt O’Brien maintained an Overweight rating and revised the price target from $150 to $90.
RBC Capital analyst Shagun Singh maintained an Outperform rating and reduced the price target from $165 to $145.

Which Analyst has the best track record to show on DXCM?

Analyst Danielle Antalffy (UBS) currently has the highest performing score on DXCM with 14/19 (73.68%) price target fulfillment ratio. Her price targets carry an average of $31 (48.44%) potential upside. DexCom stock price reaches these price targets on average within 311 days.

Deckers Brands Reports Q1 FY2025 Results; Projects Continued Growth Amid Market Challenges

Deckers Brands reported a first quarter for fiscal 2025, with earnings per share of $4.52, surpassing the analyst estimate of $3.43 by $1.09. Revenue for the quarter reached $825 million, exceeding the consensus estimate of $805.07 million, and marking a 22% increase from the previous year.

The performance was primarily driven by the HOKA brand, which saw a 30% increase in revenue to $545 million, and UGG, which reported a 14% rise in revenue to $223 million. Gross margins improved to 56.9%, up from 51.3% in the prior year, while diluted earnings per share saw an 87% increase to $4.52.

Looking ahead, Deckers reported a mixed guidance for fiscal year 2025. EPS projected a range of $29.75 to $30.65, below the consensus estimate of $31.06. Revenue forecasted $4.7 billion, falling short of the consensus estimate of $4.8 billion. Additionally, Deckers forecasts a 10% increase in total revenue, with HOKA expected to grow approximately 20% and UGG projected to see mid-single-digit growth. The updated gross margin guidance is set at around 54%, reflecting initial first-quarter benefits.

Analyst Updates Show Positive Adjustments Across the Board

TD Cowen analyst John Kernan maintained a Buy rating, and raised the price target from $1039 to $1055.
UBS analyst Jay Sole upheld a Buy rating and increased the price target from $1265 to $1350.
Barclays analyst Adrienne Yih continued an Overweight rating, and raised the price target from $1089 to $1090.
Stifel analyst Jim Duffy maintained a Hold rating, however, lifted the price target from $825 to $887.
Wedbush analyst Tom Nikic reiterated an Outperform rating, and a price target of $1030.
Truist Securities analyst Joseph Civello held a Buy rating, and raised the price target from $1200 to $1225.
Telsey Advisory Group analyst Dana Telsey kept an Outperform rating and a price target of $1100.

Which Analyst has the best track record to show on DECK?

Analyst Dana Telsey (TELSEY ADVISORY) currently has the highest performing score on DECK with 15/18 (83.33%) price target fulfillment ratio. Her price targets carry an average of $205.3 (22.95%) potential upside. Deckers Outdoor Corporation stock price reaches these price targets on average within 87 days.

RTX Surpasses Q2 2024 Earnings Expectations, Raises Full-Year Guidance

RTX reported a financial and operational performance in the second quarter of 2024, surpassing market expectations. Adjusted earnings per share came in at $1.41, outperforming the analyst estimate of $1.29 by $0.12. Adjusted sales reached $19.8 billion, exceeding the consensus estimate of $19.28 billion, marking a 10% organic increase. Free cash flow reported at $2.2 billion.

Notable achievements included a backlog growth to $206 billion, a book-to-bill ratio of 1.25, and substantial contract wins such as a 10-year MRO agreement with Air Canada, a multibillion-dollar award for the U.S. Air Force, and a $639 million SPY6 radar production contract for the U.S. Navy. Additionally, the company secured orders for over 700 GTF engines, with significant commitments from Cebu Pacific and Avalon.

Despite these operational results, RTX faced legal and contractual challenges, leading to a $0.68 charge for legacy legal matters and a $0.33 charge related to a fixed-price development contract. These charges, along with a $633 million pretax charge for legacy legal matters and a $285 million pretax charge for export control compliance issues, impacted the GAAP EPS, which stood at $0.08.

RTX also updated its 2024 guidance, raising the adjusted EPS outlook to a range of $5.35 and $5.45, above the consensus of $4.95, and adjusted sales expectation to a range of $78.75 and $79.5 billion, higher than the consensus of $72.8 billion. Free cash flow projections were revised to approximately $4.7 billion, reflecting the expected cash outflows from legal and contract matters.

Analysts Increase Price Targets Following Strong Q2 Performance

JP Morgan analyst Seth Seifman maintained an Overweight rating and raised the price target from $110 to $130.
TD Cowen analyst Cai von Rumohr maintained a Buy rating and increased the price target from $115 to $142.
RBC Capital analyst Ken Herbert reiterated a Sector Perform rating but raised the price target from $102 to $115.
Susquehanna analyst Charles Minervino kept a Positive rating and upgraded the price target from $119 to $140.
Baird analyst Peter Arment maintained a Neutral rating, however, raised the price target from $105 to $115.

Which Analyst has the best track record to show on RTX?

Analyst Gavin Parsons (UBS) currently has the highest performing score on RTX with 2/2 (100%) price target fulfillment ratio. His price targets carry an average of $3.98 (3.94%) potential upside. Raytheon Technologies stock price reaches these price targets on average within 39 days.