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SAN DIEGO, CA – DexCom Inc. (NASDAQ:DXCM), a $28.75 billion medical device company specializing in glucose monitoring systems, has announced a change in its independent accounting firm. The company, which generated over $4 billion in revenue last year and maintains a "GREAT" financial health score according to InvestingPro, has announced a change in its independent accounting firm. On Monday, the company’s Audit Committee decided to dismiss Ernst & Young LLP (EY) and appoint Deloitte & Touche LLP (Deloitte) as its new auditor for the fiscal year ending December 31, 2025.
The decision to change auditors was disclosed in a regulatory filing with the U.S. Securities and Exchange Commission (SEC). The filing stated that EY’s audit reports for the years ending December 31, 2024, and December 31, 2023, did not contain any adverse opinions or disagreements over accounting principles or audit scope.
Furthermore, DexCom reported no disagreements with EY on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the two most recent fiscal years and the subsequent interim period through March 21, 2025. There were also no reportable events that would have required EY to reference such matters in their audit reports.
DexCom provided EY with a copy of the SEC filing, as required by regulation, and EY responded with a letter agreeing with the statements made by DexCom in the filing. This letter from EY is included as an exhibit in the SEC filing.
The engagement of Deloitte as the new auditor was approved by the Audit Committee on the same day EY was dismissed. Prior to this engagement, DexCom had not consulted Deloitte on any accounting principles or auditing matters during the most recent fiscal years or the interim period.
The transition to Deloitte comes without any reported issues with EY’s previous audits or disagreements on financial reporting. DexCom’s choice to engage Deloitte is part of the company’s compliance with corporate governance and oversight of financial reporting. The company maintains a healthy current ratio of 1.47 and operates with moderate debt levels, demonstrating strong financial management. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, DexCom currently trades below its Fair Value, despite trading at a relatively high P/E ratio of 50x.
This change in DexCom’s certifying accountant is based on the information provided in the company’s recent SEC filing. While 15 analysts have recently revised their earnings expectations downward, InvestingPro analysis reveals 12 additional key insights about DexCom’s financial position and market performance, available exclusively to subscribers through detailed Pro Research Reports.
In other recent news, DexCom has reported significant developments that are of interest to investors. The company pre-announced its fourth-quarter 2024 revenue, showing an 8% organic growth to $1.114 billion, slightly above consensus estimates. Additionally, DexCom projects a 14% revenue increase for 2025, aligning with its long-range plan. Despite receiving a warning letter from the FDA regarding manufacturing practices, both Citi and BTIG analysts have maintained their Buy ratings, with Citi setting a price target of $104 and BTIG at $120. The FDA’s concerns are not expected to significantly impact DexCom’s revenue or product pipeline. Bernstein analysts have raised their price target for DexCom shares to $100, citing a return to stability after a challenging period in 2024. Furthermore, DexCom has appointed Jon Coleman as its new chief commercial officer and added Renée Galá to its Board of Directors, strengthening its leadership team. These recent developments reflect DexCom’s ongoing efforts to enhance its market position and shareholder value.
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