Dexcom Stock Collapses 33% After Sales Miss Leads To $25 Million Guidance Cut

Dexcom (DXCM) stock plummeted late Thursday after the diabetes devices maker reported lighter-than-expected June-quarter sales and slashed its outlook for the year.

↑
X

NOW PLAYING
How Novo Nordisk, Wegovy And Ozempic Are Changing The Weight-Loss Game For Patients And Investors

Sales climbed 15% year over year to just north of $1 billion. But that missed expectations for $1.04 billion, according to FactSet. Adjusted earnings came in at 43 cents per share, beating projections by four pennies and up 26.5% vs. the same three months last year.

Chief Executive Kevin Sayer acknowledged second-quarter metrics didn’t “meet our high standards.”

The company is well known for its continuous glucose monitors, body-worn devices that track glucose levels in real-time for patients with diabetes. Dexcom stock has traded sideways this year, despite expectations for the company to launch a new monitor this year.

“We have a unique opportunity to serve millions of more customers around the world with our differentiated product portfolio and we are taking action to improve our execution and best position ourselves for continued long-term growth,” he said in a statement.

Dexcom Stock Slammed On Guidance Cut

As a result, Dexcom lowered its outlook for the year. The company now expects sales to increase 11% to 13% to $4 billion to $4.05 billion. At the midpoint, that’s down $25 million from Dexcom’s prior outlook. It also lagged Dexcom stock analysts’ forecast for $4.3 billion.

Third-quarter guidance also came in well below expectations at $975 million to $1 billion, up just 1% to 3% organically. Analysts projected a stronger $1.15 billion.

The company also announced a $750 million share repurchase program.

In after-hours trading on today’s stock market, Dexcom stock crashed more than 35% to 69.75. Shares are poised to open at their lowest point since June 2022.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Sage Therapeutics Collapses 19% After Biogen-Tied Essential Tremor Drug Fails

Boston Sci Slumps After One Key Segment Drives Its Second-Quarter Beat

Looking For The Next Apple Or Amazon? Start With These S&P 500-Beating Lists

Get Stock Ideas From IBD Experts Each Morning Before The Open

Nvidia Fights AI Fatigue, ServiceNow Jumps; Inflation Data Due