Glucose monitoring systems maker Dexcom Inc. (DXCM:NASDAQ) yesterday announced financial results for its third quarter ended September 30, 2019.
In the report the company reported that worldwide revenue in Q3/19 grew by 49% to $396.3 million, compared to $266.7 million in Q3/18. The firm indicated that volume growth together with strong new patient additions continues to be the primary revenue growth driver. Dexcom further advised that U.S. revenue increased by 53% and international revenue increased by 36% in the corresponding period.
The firm indicated that GAAP operating income in Q3/19 was $56.0 million compared to $13.9 million in Q3/18. For Q3/19, the company posted GAAP net income of $45.8 million, or $0.50 per diluted share, compared to $46.6 million, or $0.52 per diluted share in Q3/18.
Regarding the effectiveness of the company's monitoring devices, the firm noted "the 3-Year COMISAIR study results continued to demonstrate the value proposition of Dexcom's real-time CGM resulting in significant improvements to A1C and time in range for Dexcom CGM subgroups regardless of one's method of insulin delivery."
The company's Chairman, President and CEO Kevin Sayer commented, "Dexcom maintained its robust revenue growth momentum in the third quarter, leading to another significant increase to our full year revenue outlook...Our team is working hard to meet demand and ensure an exceptional experience for our customers, and we look forward to a strong close to 2019."
The company updated and mostly raised its estimates for full-year 2019. The firm now expects FY/19 Revenue of $1.425–1.450 billion (38–41% annual growth). This compares to previous expectations of $1.325–1.375 billion (28–33% yearly growth). The firm advised that it anticipates a 63% gross profit margin compared to previous expectations of 64–65%. Additionally, the company indicated that it expects non-GAAP operating margin of approximately 9% up from the previously projected 7%, and non-GAAP adjusted EBITDA margin of approximately 19.5% compared to previous expectations of 18.5%.
Dexcom is a medical device company headquartered in San Diego, Calif., that designs, develops and markets continuous glucose monitoring (CGM) systems for use by people with diabetes and by healthcare providers.
Dexcom started the day with a market capitalization of around $14 billion with approximately 91.19 million shares outstanding, and about a 6% short interest. DXCM shares opened nearly 21% higher today at $185.20 (+$32.08, +20.95%) over yesterday's closing price of $153.12. The stock has traded today between $183.15-200.80 per share and currently is trading at $198.50 (+$45.38 +29.64%).
[NLINSERT]Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
