Shares in DexCom Inc. (NSDQ:DXCM) rose today after the medical device maker met expectations on Wall Street with its 4th quarter results.
The San Diego-based company posted a loss of -$7.4 million, or -9¢ per share, on sales of $171.2 million for the 3 months ended Dec. 31, for bottom-line loss of -593.3% on sales growth of 30.9% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were -9¢, a penny ahead of consensus on The Street, where analysts were looking for sales of $167.3 million.
“2016 was a strong year for DexCom,” president & CEO Kevin Sayer said in prepared remarks. “The company not only generated record revenue but also achieved a number of important milestones, including the first ever non-adjunctive indication from the FDA. We look forward to continued global growth in 2017 and beyond.”
DexCom said it expects to bring in sales of $710 million to $740 million for the full year of 2017.
DXCM shares were trading at $82.07 apiece today in morning activity, up 5.1%.
The company’s G5 Mobile device is the only FDA-approved glucose measurement system that is cleared for therapeutic decision-making. Earlier this year, DexCom scored another win when the Centers for Medicare & Medicaid classified therapeutic continuous glucose monitors as durable medical equipment under Medicare Part B.
The G5 Mobile is the only CGM system that falls under the therapeutic classification, according to the company, since patients can make treatment decisions using the device.
Leerink Partners analyst Danielle Antalffy said in a report that DexCom is poised to grow in the coming year, thanks to the CMS coverage decision and the FDA indication approval.
“At the very least, we believe recently-announced CMS coverage makes DXCM’s 2017 sales growth guidance easily achievable, and at best likely beatable,” Antalffy wrote. “And with a plethora of incremental growth drivers, including an expected G6 launch in 2018 with yet again a best-in-class MARD and ongoing international expansion, DXCM is well-positioned to drive sustainably strong double-digit growth – likely 20%+ and accelerating as new products launch – longer term.”
