Dexcom (Nasdaq:DXCM) shares took a hit after hours today on second-quarter results that came up shy of the consensus forecast.
Shares of DXCM were down 7.2% at $80.69 after the market closed. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day up 2.4%.
The San Diego-based continuous glucose monitor (CGM) developer posted profits of $50.9 million, or 12¢ per share, on sales of $696.2 million for the three months ended June 30, 2022, for a 35.1% bottom-line slide despite sales growth of 17%.
Adjusted to exclude one-time items, earnings per share were 17¢, 2¢ behind Wall Street, where analysts were looking for sales of $698.55 million.
“In the second quarter, Dexcom advanced a number of key initiatives, including the expansion of our CGM portfolio strategy in international markets,” Dexcom Chair, President and CEO Kevin Sayer said in a news release. “We are excited for the rest of this year, particularly as we implement a broader launch of G7 in the coming weeks.”
The Dexcom next-generation G7 CGM is yet to receive U.S. approval, but won CE mark in March and the company highlighted an updated sensor algorithm for G7 that received CE mark this quarter, making the latest G7 sensor technology available to international markets.
Dexcom tightened its full-year revenue guidance range, with the company now expecting sales between $2.86 billion and $2.91 billion (17%-19% growth). The previous projection was for between $2.82 million and $2.94 billion (15% to 20% growth).
BTIG analyst Marie Thibault wrote in a report that commentary on the quarter remained “upbeat,” with new patient adds for the U.S. and international regions, plus expectations of accelerated U.S. growth in the second half of the year. However, the analyst did temper expectations on performance while remaining confident in the company’s ability to grow.
“We reduce our 2022 sales forecast and push some 2H22 revenue into 2023 to reflect the G7 FDA timeline,” Thibault wrote. “Though DXCM shares could be weak tomorrow, we remain bullish on long-term growth and the opportunity for CGM market expansion.”