Dexcom jumps on Q2 sales beat despite earnings miss

Dexcom Inc. (NSDQ:DXCM) shares jumped this week after the continuous glucose monitor maker posted sales growth of nearly 60%, handily beating the forecast on Wall Street and paring its losses by some 38%.

San Diego-based Dexcom reported losses of -$3.7 million, or -5¢ per share, on sales of $93.2 million for the 3 months ended June 30. Although analysts on The Street were looking for losses of just -3¢, they forecast sales of only $84.9 million.

President & CEO/COO Kevin Sayer said Dexcom also raised its sales outlook for 2015, to $350 million to $375 million.

“This means Dexcom will need to generate at least $200 million in the 2nd half of 2015 to achieve the mid to upper half of our range,” Sayer told analysts during an August 5 conference call. “Pretty ambitious considering we generated $257 million in revenue for all of last year.”

Sayer said Dexcom expects to win FDA approval for its next-generation G5 mobile system for children and adults later this year. The company will look to submit for approval for the G6 sensor early next, with a launch hoped for in early 2017, he said.

“Gen 5 is that next step. We believe the data going straight to a phone will enable patients not to carry an extra thing around in their pocket and will be very helpful. But we also know the next step after that: We have to make it more convenient, we have to eliminate calibrations and the hassle factor, and we have to continue to maintain our excellent level of accuracy. All those things matters, and we address every 1 of those things every time we iterate,” Sayer said, according to a Seeking Alpha transcript.

DXCM shares closed up 8.6% August 5 at $93.31 apiece that day, and were trading at $90.96 each in mid-afternoon activity today, down -2.5%.

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