Shares of the San Diego medical-device company at last check were up 8.4% to $273.50.
Dexcom, which makes continuous glucose monitoring systems, reported fourth-quarter earnings of $1.15 a share, more than double the 54 cents of the year-earlier quarter and beating Bloomberg's call for 74 cents a share.
Revenue rose 37% to $462.8 million, ahead of the Bloomberg consensus estimate of $442.4 million.
Canaccord analyst Kyle Rose reiterated his buy rating on the company and raised his price target to $300 from $255 in light of the quarterly showing.
He said in a note to clients that several opportunities support growth in 2020 and beyond.
Rose said he remained bullish on the long-term product pipeline, growing market, and opportunity to deliver upside in 2020.
JP Morgan analyst Robbie Marcus, who rates Dexcom overweight, similarly raised his price target to $300 from $255. He noted the company's plan for a third manufacturing facility outside the U.S., which will further efforts to cut production costs in the long term.
Margaret Kaczor, an analyst with William Blair, called the results “another blowout quarter.”
“We were encouraged to see strong U.S. sales growth of 34%, given the difficult 50% year-over-year comparison with momentum supported by strong, broad adoption in all of DexCom’s commercial channels,” said Kaczor.
Kaczor, who rates the stock outperform, said that other diabetes-treatment companies that have yet to report earnings, including Insulet (PODD) - Get Report and Tandem Diabetes (TNDM) - Get Report, may gain in sympathy.