Looking back on patient monitoring stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including DexCom (NASDAQ: DXCM) and its peers.
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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.9% below.
Luckily, patient monitoring stocks have performed well with share prices up 16.5% on average 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 $1.04 billion, up 12.5% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates.
The stock is up 16.7% since reporting and currently trades at $82.
Is now the time to buy DexCom? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $569 million, up 28.8% year on year, outperforming analysts’ expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts’ constant currency revenue and EPS estimates.
Insulet achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18.4% since reporting. It currently trades at $304.39.
Is now the time to buy Insulet? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $372 million, up 9.5% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a mixed quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Masimo delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.3% since the results and currently trades at $157.02.
Read our full analysis of Masimo’s results here.
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 $1.29 billion, up 7.9% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged EPS in line with analysts’ estimates but constant currency revenue in line with analysts’ estimates.
ResMed had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 16.7% since reporting and currently trades at $250.09.
Read our full, actionable report on ResMed here, it’s free.
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 $158.7 million, up 20.3% year on year. This result beat analysts’ expectations by 3.3%. It was a strong quarter as it also logged full-year revenue guidance beating analysts’ expectations.
iRhythm scored the highest full-year guidance raise among its peers. The stock is up 33% since reporting and currently trades at $144.95.
Read our full, actionable report on iRhythm here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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