Dexcom easily topped Wall Street's third-quarter expectations, shrugging off concerns that new weight-loss drugs would undercut its sales. DXCM stock popped 10% Friday.
The company makes continuous glucose monitors, or CGMs. These body-worn devices keep tabs on blood sugar in real time to help treat diabetes. Investors have worried recently that a new class of drugs, dubbed GLP-1 agonists, could decrease the number of patients who need CGMs.
But Dexcom says that's not the case — and proved its point in the third quarter. Sales climbed 27% to $975 million. Organically, sales jumped 26%. That beat expectations for $940 million, according to FactSet. Adjusted earnings almost doubled, surging 79% to 50 cents a share, above calls for 34 cents.
"Our teams executed incredibly well in the third quarter, delivering solid financial results while further advancing global access to Dexcom CGM," Chief Executive Kevin Sayer said in a statement.
In midday trading on the stock market today, DXCM stock jumped 10.1% to 89.29.
DXCM Stock Soars On Raised Outlook
Dexcom also raised its outlook for the full year.
Now, the company expects sales to soar 23% to 24%, hitting roughly $3.58 billion to $3.6 billion. That came in well above DXCM stock analysts' forecast for $3.55 billion in sales.
Dexcom also announced a $500 million share-repurchase program in conjunction with its third-quarter results.
The news puts DXCM stock on deck to open Friday morning within striking distance of its 50-day moving average for the first time since July, according to MarketSmith.com.
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