DXCM - DexCom stock soars +14% after hours on raised revenue guidance $500M share buyback

2023-10-26 16:39:37 ET

Shares of DexCom ( NASDAQ: DXCM ) on Thursday surged more than 14% in extended trading, after the medical device maker raised its full year revenue guidance and announced a new $500M share buyback.

DXCM stock jumped 14.1% to $92.50 after hours.

The company posted Q3 adjusted earnings per share of $0.50, which beat estimates by 17 cents. Revenue jumped nearly 27% Y/Y to $975M, beating expectations by $37.38M.

San Diego, Calif.-based DexCom ( DXCM ) makes continuous glucose monitoring systems that are used by diabetes patients to manage their disease. Its flagship products, the G6 and G7 systems, are wearable devices that come with a mobile application to allow tracking.

DexCom ( DXCM ) management back on the Q2 earnings conference call in July had said that the launch of its newer G7 device was gaining momentum, with 8K physicians writing scripts for the system in the U.S. that were previously not prescribing DXCM.

In Q3, the company's revenue growth was driven by increased volume as well as strong new customer additions, amid increasing awareness of real-time continuous glucose monitoring.

"Our continued momentum has left us in a great position to again raise our full-year revenue and margin guidance and finish a strong 2023,” DexCom ( DXCM ) top boss Kevin Sayer said in a statement on Thursday.

DXCM now sees full year revenue of about $3.575B to $3.6B, compared to a prior forecast of $3.50B to $3.55B. The consensus revenue estimate is $3.54B.

Recently, some investors have voiced concerns that companies such as DexCom ( DXCM ) that develop diabetes-related devices can be impacted from the recent craze over GLP-1 drugs. Abbott Laboratories ( ABT ) CEO Robert Ford last week downplayed their perceived threat.

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• Seeking Alpha's Quant Rating on DexCom

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