Dexcom (NSDQ:DXCM) beat expectations on Wall Street with its fourth quarter and full year financial results, growing its quarterly revenue 29% compared to the same period last year.
The San Diego, Calif.-based company posted a net loss of -$9.4 million, or -11¢ per share, on sales of $221 million for the 3 months ended Dec. 31. Adjusted to exclude one-time items, earnings per share were 10¢, handily topping consensus on The Street, where analysts were looking for sales of $215.9 million.
For the full year, Dexcom reeled in its losses, posting -$50.2 million, or -58¢ per share, on sales of $718.5 million – up 25% from 2016. Adjusted earnings per share were -58¢, ahead of analysts’ expectations on The Street.
“2017 was defined by several key accomplishments for Dexcom, highlighted by record revenue, strong Q4 financial results, and meaningful progress on a number of strategic programs,” president & CEO Kevin Sayer said in prepared remarks.
“In the U.S., our commercial team executed well as we initiated our rollout into the Medicare population, and our international franchise exceeded expectations. Dexcom also made big strides with our product pipeline, including our next generation system and with our development partners both in our intensive and non-intensive initiatives. We believe we are well positioned for continued success in 2018.”
Dexcom issued guidance for the first quarter of 2018 that was below analysts’ expectations, reporting that they expect to bring in 20% of the full-year sales for 2018 in the first quarter. Leerink analysts Danielle Antalffy and Rebecca Wang wrote in a note to investors that Dexcom is likely a “2H18 story.”
“With regard to the pipeline, management gave us further confidence that G6 with no calibration is expected to launch in 2018. As management contemplated several factors in the reiterated guidance, including G6 launch, ramp in Medicare, competitive launches, and some pricing pressure, we are inclined to think that management is exercising prudent conservatism to reset the Street expectations in light of fairly unpredictable moving parts in 2018,” the analysts wrote.
In the company’s annual report, Dexcom detailed a litigious back-and-forth with AgaMatrix regarding patents for the company’s products. In March of 2016, AgaMatrix filed a patent infringement suit against Dexcom in the U.S. District Court of Oregon. Dexcom said it has gone before the U.S. Patent Trial and Appeal Board to review the three patents asserted in AgaMatrix’s case.
Dexcom shot back at AgaMatrix in Aug. of 2016, filing a patent infringement suit in the U.S. Central District Court of California. But on Feb. 5 this year, a judge ruled that AgaMatrix’s product does not infringe upon Dexcom’s patent.
Dexcom also filed a patent infringement suit against AgaMatrix in the U.S. District Court of Delaware, alleging that AgaMatrix’s single-point blood glucose monitoring product infringes upon two patents held by Dexcom.
DXCM shares were trading at $54.50 apiece in pre-market activity today, down -2.2%.
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