Dexcom (NSDQ:DXCM) reported mixed Q4 2020 results and reiterated a fiscal year 2021 revenue guidance that is slightly below Wall Street projections.
The San Diego–based continuous glucose monitor company yesterday evening reported profits of $355.2 million, or $3.48 per share, on sales of $568.9 million for the three months ended Dec. 31, 2020, nearly quadrupling the bottom line on 23% sales growth compared with Q4 2019.
Adjusted to exclude one-time items, earnings per share were 91¢, a penny behind The Street, where analysts were looking for EPS of 92¢ on sales of $552.88 million.
Dexcom CEO Kevin Sayer in a news release described 2020 as “another strong year for Dexcom, culminating with record annual new patient additions and absolute dollar revenue growth, and our highest gross margin quarter in the past five years.”
“We are making excellent progress on our strategic objectives as we press forward to bring Dexcom CGM to the many people around the world who stand to benefit from better glycemic control,” Sayer said.
Sayer added during the following earnings call that the work on the company’s next-gen G7 CGM remains on track: “Our clinical work is continuing as we progress with the regulatory path in 2021 to support our goal to launch G7 in the second half of the year.” He later clarified that some markets may have to wait until early 2022.
The company is reiterating guidance for fiscal year 2021 revenue of roughly $2.21–2.31 billion, representing 15–20% growth but also slightly behind the Wall Street consensus of $2.33 billion. Dexcom is also projecting a non-GAAP gross profit margin of approximately 65% this year.
“We’re very bullish on some of these new market opportunities and contributions that can come from them, but we’re not going to get ahead of ourselves with respect to those expectations as they play out,” Dexcom CFO Quentin Blackford said during the earnings call.
Dexcom has announced a number of initiatives to fuel growth, including a plan to double its sales force and scale-up direct-to-consumer marketing. The company is also ramping up manufacturing in Malaysia, where it has its first manufacturing site outside of the U.S. There’s a new global business services unit in Lithuania. Plus, Dexcom has also established an inaugural venture capital fund.
UBS analysts after the call reiterated their buy rating for DCXM shares and raised their price target: “While DXCM is sacrificing some near term margin, we like the strategy to go on offense to attack this huge [total available market].”
Investors reacted by sending DCXM shares down –4.3% in after-hours trading yesterday. But by the next morning, shares were only down –1.52%, trading at $403.97 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly this morning.
This story originally ran on Thursday, Feb. 11, after market close. Updated with additional details, including from earnings call. Pharma editor Brian Buntz contributed to this article.
