Investors took Dexcom (DXCM) stock to the woodshed late Thursday despite the company’s first-quarter beat and boosted sales guidance.
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But that hiked sales guidance was light at the midpoint and Dexcom stock plummeted more than 7% to 127 in after-hours action. Shares easily undercut a recent buy point at 132.03 out of a flat base, MarketSurge chart analysis shows. Shares had closed in a buy zone before the earnings release.
Dexcom makes continuous glucose monitors, or CGMs. These body-worn devices help people with diabetes keep tabs on their blood sugar in real time — a critical component to managing the disease. In the first quarter, sales surged 24% to $921 million. Organically, sales climbed 25% year over year.
That easily beat expectations for $910 million, according to FactSet.
Further, adjusted earnings came in at 32 cents per share, a nickel above forecasts, and nearly double the 17 cents a share the company reported in the year-earlier period.
Dexcom also raised the lower boundary of its guidance for the year, and now expects $4.2 billion to $4.35 billion in sales. The midpoint is slightly below Dexcom stock analysts’ forecast for $4.33 billion.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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