From CNBC: 2024-07-26 13:45:24

Dexcom stock plummeted over 40% after disappointing Q2 revenue and weak guidance, wiping out $18 billion in market cap. Revenue increased to $1 billion, falling short of expectations. CEO cites issues with sales team restructuring, fewer new customers, and rebate impact on new product sales. JPMorgan analysts downgraded stock to hold, pointing to self-inflicted challenges.

Expectations for Q3 revenue of $975 million to $1 billion are lower, and full year guidance is now $4 billion to $4.05 billion. The company attributes the $300 million shortfall to DME struggles and faster rebate eligibility for their new CGM. JPMorgan analysts express shock at guidance change related to sales force reshuffling. Analysts at William Blair and Leerink believe the stock sell-off may be overdone and view long-term potential positively.

Dexcom introduced their FDA-cleared Stelo CGM in March for Type 2 diabetes patients. The official launch is set for August. Despite the 50% year-to-date stock decline, some analysts are optimistic about Dexcom’s ability to rebound. The S&P 500, in contrast, is up 15% this year.

In conclusion, Dexcom faces challenges with revenue expectations due to internal factors like sales team restructuring and product rebate impact. Despite the steep stock decline, some analysts see potential for recovery in the long term. The company plans to launch its Stelo CGM for Type 2 diabetes patients.



Read more at CNBC:: Dexcom shares plunge more than 40% after Q2 earnings