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| Dexcom Stock Collapses 33% After Sales Miss Leads To $25 Million Guidance Cut |
Dexcom's stock took a significant hit on Thursday after the company reported disappointing sales for the June quarter and reduced its full-year outlook.
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Sales grew by 15% year-over-year, reaching just over $1 billion, but this fell short of the expected $1.04 billion, according to FactSet. Adjusted earnings were 43 cents per share, which beat expectations by four cents and represented a 26.5% increase from the same period last year.
CEO Kevin Sayer admitted that the second-quarter results did not meet the company's high standards.
Dexcom, known for its continuous glucose monitors that provide real-time glucose tracking for diabetes patients, has seen its stock stagnate this year despite anticipation of a new monitor launch.
"We have a unique opportunity to serve millions more customers globally with our differentiated product portfolio. We are taking action to improve our execution and best position ourselves for continued long-term growth," Sayer stated.
Following the report, Dexcom reduced its annual sales forecast. The company now predicts an 11% to 13% sales increase, reaching $4 billion to $4.05 billion. This is a $25 million reduction from the previous outlook and falls short of analysts' predictions of $4.3 billion.
The third-quarter forecast was also lower than expected, with sales projected at $975 million to $1 billion, reflecting just a 1% to 3% organic growth. Analysts had anticipated $1.15 billion.
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Additionally, Dexcom announced a $750 million share repurchase program.
In after-hours trading, Dexcom's stock plummeted more than 35% to 69.75, marking its lowest level since June 2022.
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