Looking back on patient monitoring stocks’ Q3 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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
While some patient monitoring stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% 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 $1.21 billion, up 21.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and a narrow beat of analysts’ organic revenue estimates.
Unsurprisingly, the stock is down 13.3% since reporting and currently trades at $59.12.
Best Q3: 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 $192.9 million, up 30.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.
iRhythm scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3% since reporting. It currently trades at $178.82.
Is now the time to buy iRhythm? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $1.34 billion, up 9.1% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but constant currency revenue in line with analysts’ estimates.
ResMed delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $252.75.
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 $706.3 million, up 29.9% year on year. This number topped analysts’ expectations by 3.9%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 6.9% since reporting and currently trades at $336.20.
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 $371.5 million, up 8.2% year on year. This result surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also produced a solid beat of analysts’ full-year EPS guidance estimates and full-year operating income guidance beating analysts’ expectations.
Masimo achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $149.91.
Read our full, actionable report on Masimo here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
