DexCom, Inc. (NASDAQ: DXCM)
Glucose monitoring systems provider Dexcom, Inc. was one of the biggest gainers on Thursday, with a climb of $29.25, or 30.65% to trade at $124.69.
The gain came after the firm revealed better-than-expected quarterly financial results for the three months ended June 30, 2018.
Net profit jumped 941% to $30.2 million, thanks to significant adoption of continuous glucose monitors (CGMs) that are used by persons with diabetes. Meanwhile, net sales grew 42% to $242.5 million from the same quarter a year ago.
Diabetes patients are increasingly using CGMs to regulate their blood sugar levels. CGMs rely on tiny sensors placed under the skin that regularly harvest and convey data to a separate receiver, which calculates, tracks, and reports blood glucose levels.
DexCom shares have soared 66% since the beginning of the year. The stock has climbed 43% in the last twelve months.
DXCM Earnings & Outlook
During the quarter, the San Diego-based company reported a net income of $30.2 million, or 34 cents per share.
In the second quarter of the previous year, the firm had a net income of $2.9 million, or 3 cents per share. After excluding amortization expenses and special items, Dexcom had a loss of 10 cents per share.
Total revenues during the quarter totaled to $242.5 million, versus revenues of $170.6 million in a similar quarter a year ago. Analysts had anticipated adjusted loss of 18 cents per share on sales of $205.8 million, based on figures compiled by Thompson Reuters.
US sale jumped 35% from a year ago, while international sales soared 78% from the previous year. For the full year, the company expects sales of around $925 million, from its previous forecast of $850 million to $860 million.
DexCom CEO Comments
Commenting on the results, DexCom President and Chief Executive Officer Kevin Sayer said, “Q2 was a fantastic quarter for DexCom and demonstrates that CGM adoption is increasing significantly. This performance was particularly notable considering we only began launching our revolutionary G6 platform late in the quarter, and we are pleased to be able to raise our full year growth outlook.”
DexCom, Inc. Company Profile
DexCom, Inc. is a medical device company that designs, develops, and commercializes continuous glucose monitoring systems in the US and globally. It offers its glucose monitoring systems for use by healthcare providers; and for ambulatory use by persons with diabetes.
The products offered by the company include DexCom G5 mobile continuous glucose monitoring systems for communicating directly to the mobile devices of patients; and DexCom Share, a remote monitoring system; and DexCom G4 PLATINUM systems for continuous use by individuals with diabetes.
DexCom, Inc. also has a strategic license agreement and collaboration with Verily Life Sciences LLC for the development of a series of next-generation continuous glucose monitoring products. It markets its products directly to diabetes educators, endocrinologists, and physicians.
DexCom, Inc. competes with Johnson & Johnson, Roche Diagnostics, Panasonic Healthcare Holding, and Abbott Laboratories, Medtronic, Inc. The company was founded in 1999 by John F. Burd. Its headquarters are based in San Diego, California. –Reuters