Shares of Dexcom (DXCM) are down 35% after the diabetes management company reported second-quarter financial results that disappointed Wall Street and lowered its forward guidance.
The San Diego-based company, which makes glucose monitoring systems, announced earnings per share (EPS) of $0.43 U.S., which topped analyst expectations for $0.39 U.S.
However, revenue of $1 billion U.S. missed forecasts that called for $1.04 billion U.S. Sales were up 15% from a year earlier.
Dexcom lowered its forward guidance, saying it now expects revenue of $975 million U.S. to $1 billion U.S. for the current third quarter of the year.
For all of 2024, Dexcom now projects revenue of $4 billion U.S. to $4.05 Billion U.S. That’s down from $4.20 billion U.S. to $4.35 billion U.S. that it forecast previously.
The company attributed the lowered guidance to a restructuring of its sales team, fewer new customers, and lower revenue per user.
Dexcom makes tools for monitoring glucose levels in people with diabetes.
Some analysts have raised concerns that the growing popularity of GLP-1 weight-loss treatments and a new crop of diabetes drugs could hurt Dexcom’s sales.
Before today (July 26), Dexcom’s stock had declined 18% over the last 12 months to trade at $107.85 U.S. per share.
