Dexcom's first-quarter profit came in unexpectedly light Thursday — despite a clean sales beat — leading Dexcom stock to tumble.
In the first quarter, the diabetes devices company earned 32 cents per share, excluding certain items, on $628.8 million in sales. Earnings fell by a penny year over year and lagged the Street's projections by 20 cents. Sales, on the other hand, narrowly beat and rocketed 25%.
Now, the company is focusing on launching its next-generation continuous glucose monitor, or CGM, abroad. These body-worn devices help patients with diabetes keep tabs on their blood sugar. The CGM called G7 has yet to launch in the U.S. Chief Executive Kevin Sayer has said he expects it to pass Food and Drug Administration muster this year.
"We are very excited about our initial launch of G7 internationally and look forward to bringing this product to many more people globally over the course of the year," he said in a written statement.
Still, in after-hours trading today's stock market, Dexcom stock toppled 2.2% near 404.
Dexcom Stock: Growing CGM Awareness
Officials in Europe allowed the G7 for people age 2 and older with diabetes. Dexcom says it began a limited launch. Further, the company says it won a breakthrough designation from the FDA for use of its CGMs in hospitalized patients. Both moves should help expand use of the diabetes devices.
Awareness of CGMs is growing. Dexcom noted a growing number of patients are using CGMs. The shift in treatment helped drive sales growth, the company said in a news release.
But, for the year, Dexcom called for $2.82 billion to $2.94 billion in sales. Though sales would grow 15%-20%, Dexcom stock analysts had more bullish calls for $2.92 billion. The midpoint of guidance at $2.88 billion narrowly lagged analysts' forecast.
Analysts also expected adjusted earnings of $3.41 a share. Dexcom didn't offer an earnings outlook.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
