Shares of DexCom Inc. (DXCM) surged 15.3% in after-hours trading on Thursday, making it one of the top gainers in the S&P 500. This came after the maker of glucose monitoring systems reported impressive third-quarter profit results and raised its revenue outlook.
Robust Financial Performance
DexCom’s net income for the quarter rose to $120.7 million, or 29 cents a share, compared to $101.2 million, or 24 cents a share, in the same period last year. Adjusted earnings per share, excluding nonrecurring items, came in at 50 cents, exceeding the FactSet consensus of 34 cents.
In terms of revenue, DexCom experienced significant growth, with a 26.7% increase to $975.0 million. This surpassed the FactSet consensus of $939.6 million. The strong revenue performance was primarily driven by volume growth and the addition of new customers, as awareness of their real-time continuous glucose monitor (CGM) continues to grow.
Promising Future Outlook
Looking ahead to 2023, DexCom has revised its revenue guidance range to $3.575 billion to $3.600 billion, up from the previous range of $3.500 billion to $3.550 billion provided in July. The current FactSet consensus for 2023 revenue stands at $3.55 billion.
Market Response
Despite DexCom’s recent success, the company’s stock has faced challenges in recent months. Over the past three months, the stock has declined by 38%. In contrast, the S&P 500 has experienced a loss of 9.4%. However, with the strong Q3 earnings and positive revenue outlook for the future, DexCom is poised for a potential rebound in stock performance.
Stay tuned for more updates on DexCom Inc. as it continues to make strides in the glucose monitoring systems market.
