Kevin Sayer, CEO of Dexcom.
Scott Mlyn | CNBC
Actions of dexcom fell 9% in extended trading Thursday after the company released third-quarter results that beat analysts' expectations but showed a decline in U.S. revenue year-over-year.
Here's what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: 45 cents adjusted versus 43 cents expected
- Revenue: $994 million vs. $990 million expected
The company's revenue rose 2% to $994.2 million from $975 million a year earlier. Dexcom's U.S. revenue decreased 2% from $713.6 million a year earlier. The company reported net income of $134.6 million, or 34 cents per share, down from $120.7 million, or 29 cents per share, in the same period last year.
Dexcom offers a suite of tools, such as continuous glucose monitors, or CGMs, for patients who have been diagnosed with diabetes. In August, it launched its first over-the-counter product called Stelo, aimed at adults who don't take insulin.
The company maintained its full guidance for the fiscal year and expects revenue of between $4.0 billion and $4.05 billion. Last quarter, Dexcom lowered its guidance from $4.2 billion to the $4.35 billion it forecast for the first quarter.
This reduction in guidance and the lack of revenue caused Dexcom shares to fall more than 40% after the release of its second quarter results in July. The company's CEO, Kevin Sayer, attributed the challenges to a restructuring of the company's sales team, fewer new customers than expected and lower revenue per user.
Sayer said on a call with investors Thursday that these issues improved during the third quarter.
The company also announced that Teri Lawver, Dexcom's chief commercial officer, will retire at the end of the year. Lawver will remain as an advisor until early next year and Sayer will lead the commercial organization while Dexcom searches for a replacement.
