DexCom has made progress with turning things around although top-line growth leaves much to be desired, an analyst said following the glucose monitoring equipment maker’s Q3 results.
Dexcom, Inc. ($DXCM) shares fell sharply in Friday’s pre-market session as traders reacted to the company’s third-quarter earnings released late Thursday.
The San Diego, California-based glucose monitoring devices manufacturer reported third-quarter non-GAAP earnings per share (EPS) of $0.45 compared to the consensus estimate of $0.43. It, however, fell from the $0.50 per share earned a year ago.
Revenue rose 2% year-over-year (YoY) from $975 million to $994.2 million. Analysts, on average, estimated a modest $990.44 million for the quarter. A 2% revenue drop in the U.S. was more than offset by 12% growth in international operations.
The double beat is a welcome relief after the company missed top-line expectations in the second quarter.
“DexCom’s third quarter results were in line with our expectations as our team responded quickly to the business dynamics that emerged earlier this year,” said CEO Kevin Sayer.
“We made significant progress over the quarter to drive improved execution, leaving the company on track to continue on our momentum in the fourth quarter and into 2025.”
During the quarter, DexCom launched Stelo, its new biosensor designed for adults with prediabetes and type 2 diabetes, who are not on insulin therapy. The device marked the first over-the-counter glucose biosensor in the U.S.
The company reiterated its 2024 guidance of $4 billion to $4.05 billion versus the $4.01 billion Wall Street currently forecasts, according to Yahoo Finance. It also stuck with its margin outlook for the year.
Dexcom announced a management transition as Teri Lawver, who serves as chief commercial officer, is set to retire by the year-end. Sayer will assume her responsibilities as the company begins a search for a replacement.
Lawver will continue on an advisory role through early 2025, the firm said.
As of 8:00 am ET in premarket trading, DexCom shares fell 4.61% to $71.40.
But the retail crowd was largely appreciative of DexCom’s quarterly results. The sentiment score on Stocktwits pointed to an “extremely bullish” stance (89/100), reversing from the “bearish” mood that prevailed a day ago.
Retail chatter also grew louder with message volume “extremely high.”
Some retailers recommended buying the dip, as the stock pulled back to a low of about $63 in early after-hours session, immediately after the results.
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