Dexcom stock jumped Friday after the maker of devices for diabetes patients beat Wall Street's fourth-quarter expectations and reiterated its sales outlook for 2023.
The company makes continuous glucose monitors, or CGMs, for patients with diabetes. These body-worn devices keep tabs on blood sugar in real time. During the December quarter, sales increased 17% to $815.2 million. On an organic basis, sales surged 20%. That beat expectations for $810 million in sales.
Now, Dexcom is focusing on a full U.S. launch of its newest CGM, dubbed G7. The Food and Drug Administration cleared G7 for people age 2 and older last year, following the European clearance.
"As we move into 2023, we are very excited to officially bring G7 to the U.S. market and further advance our strategic initiatives to reach millions of additional people that could benefit from Dexcom CGM," Chief Executive Kevin Sayer said in written remarks.
On the stock market today, Dexcom stock jumped 9.9% and closed at 117.89. Shares are currently consolidating with a buy point at 125.65, according to MarketSmith.com.
Dexcom Stock: Earnings Skyrocket
Promisingly, Dexcom earned 34 cents per share, minus some items, in the fourth quarter. Dexcom stock analysts predicted 27 cents per share. Earnings reversed from a 1-cent loss in the year-ago period.
The strong earnings are reflected in Dexcom's EPS Rating of 90. This puts Dexcom stock in the leading 10% of all stocks when it comes to recent profitability, according to IBD Digital.
Dexcom reiterated its 2023 outlook for $3.35 billion to $3.49 billion in sales. At the midpoint of $3.42 billion, revenue would climb roughly 17.5%. The midpoint missed more bullish expectations for $3.47 billion. Dexcom stock analysts also forecast earnings of $1.06 per share.
Dexcom stock analysts had projected earnings of $1.06 per share and $3.47 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
