The San Diego-based continuous glucose monitoring technology developer posted profits of $46.3 million, or 48¢ per share, on sales of $451.8 million for the three months ended June 30, 2020, for a massive bottom-line gain after losses of $10.5 million this time last year. Sales were up 34.3%.
Adjusted to exclude one-time items, earnings per share were 79¢, 44¢ ahead of Wall Street, where analysts were looking for sales of $415.7 million.
During the ongoing COVID-19 pandemic, the company made its CGM systems available to U.S. hospitals and healthcare facilities to assist frontline workers as it adjusted to doing business during the crisis.
The company additionally noted that plans to launch its G7 CGM system remains on hold, having had pivotal studies delayed by at least six months as of last quarter, due to the pandemic.
Dexcom chairman, president & CEO Kevin Sayer said on the company’s earnings call that it won’t “rush to accommodate” the launch of the technology and will wait to debut it when the company can fully transition users of the G6 to the G7.
“Our growth in the second quarter reflects the commitment of the Dexcom teams to rapidly adjust during the COVID-19 pandemic and ensure service to our customers and our communities,” Sayer said in a news release. “We are pleased to reinstate 2020 guidance as we press forward to bring Dexcom CGM to the many more who stand to benefit from real-time glucose monitoring.”
Dexcom said it now expects to register revenues of approximately $1.85 billion, which would represent 25% growth. Additionally, the company anticipates its non-GAAP gross profit margin to meet or exceed 65% for fiscal 2020.
DXCM shares were up 1.54% at $424.22 per share after hours today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day down -1%.
Today (July 29), shares of DXCM continue to rise and are up 3.5% at $432.27 in mid-afternoon trading.
This story was updated with additional information from Dexcom’s earnings call.