DexCom (DXCM) lost 40.66% of its value following its quarterly earnings report. Investors punished the firm for posting a weak Q3 and full-year outlook.
DexCom expects Q3 revenue of $975 million to $1.0 billion, which is below consensus estimates. For 2024, revenue is between $4.0 billion to $4.05 billion. GLP-1 (obesity drugs) are only a partial reason for the stock falling. The firm relied too heavily on one product. With a weak outlook, markets are now correcting the stock to lower valuation multiples.
In the biotech sector, Biogen (BIIB) shares fell by 7.15% after its partner, Eisai (ESAIY), did not get marketing authorization for the Alzheimer’s drug, lecanemab. The EU drug regulator, the European Medicines Agency, declined the authorization.
In the aerospace sector, L3Harris (LHX) pulled back after posting Q2 results. Revenue grew by 13.0% to $45.3 billion. Despite healthy margins, the firm posted a weak book-to-bill ratio of 1.0. This is below that of RTX (RTX), which posted a 1.25 ratio. Still, the firm is taking a disciplined approach in its bids to strengthen its profitability.
Analysts from Deutsche Bank downgraded LHX stock. Long-term investors may consider taking advantage of the stock at a sale price today.
