Dexcom (DXCM) stock crashed late Thursday even though the diabetes devices player beat Wall Street’s third-quarter expectations and reiterated its outlook for the year.
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The report follows the launch of Dexcom’s newest continuous glucose monitor, or CGM, known as Stelo. The body-worn device helps measure glucose levels in real time. But unlike Dexcom’s other offerings, it’s tailored for people with prediabetes or type 2 diabetes not requiring insulin.
That launch could be more complicated in 2025, however. Dexcom announced Chief Commercial Officer Teri Lawver will retire at the end of the year. Lawver will serve as a special advisor through early 2025. Chief Executive Kevin Sayer will lead commercial efforts while the company looks for a new chief commercial officer.
In after-hours trades, Dexcom stock tumbled more than 6% to 70.32.
Dexcom Stock Dives Despite Strong Report
In the September quarter, Dexcom earned an adjusted 45 cents a share, beating expectations by two pennies. Earnings dipped 14% year over year. Sales edged 2% higher to $994.2 million, topping the Street view for $990 million, according to FactSet.
Organically, sales advanced 3% vs. the year-ago period.
Dexcom also reiterated its guidance for the year. The company calls for $4 billion to $4.05 billion in sales, vs. Dexcom stock analysts’ projection for $4.01 billion. That represents 11% to 13% organic sales growth.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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