Dexcom slides on Q1 earnings miss despite sales beat

Dexcom (NSDQ:DXCM) shares have slipped nearly 6% since the continuous glucose monitoring company released its 1st-quarter results April 27 after the company missed Wall Street’s earnings expectation.

San Diego-based Dexcom reported that losses widened 48.8% to -$19.2 million, or -23¢ per share, on sales of $116.2 million for the 3 months ended March 31 – for a top-line gain amounting to a whopping 59.6%. Still, losses were a penny behind The Street’s consensus for losses of -22¢.

Dexcom stood pat on its guidance for full-year revenues, with strategy & corporate development EVP Steven Pacelli telling analysts “we will stick with our current guidance of $540 million to $565 million in revenue for the year,” according to a Seeking Alpha transcript.

Dexcom, which is dealing with a Class I recall related to possible audible alarm malfunctions with its G4 Platinum and G5 Mobile CGM systems, could incur an extra $5 million in costs from the recall, president & CEO Kevin Sayer told analysts during the call.

Sayer said the company has already filed for FDA approval for a newer, more robust speaker for the existing receivers; a bid for FDA approval for a new receiver is due to be filed with the safety watchdog before the end of this quarter, he said. A software upgrade is being evaluated that would periodically test the systems’ audio, he said.

“While the agency has not approved any of our proposed actions, the FDA is aware of them and we are confident that they will continue to work with us to implement features to improve patient safety,” Sayer said.

DXCM shares were trading at $64.49 apiece today in early-afternoon activity, down -5.7% since their $68.41 close April 27, the day of its earnings release.

The post Dexcom slides on Q1 earnings miss despite sales beat appeared first on MassDevice.

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