Dexcom Inc. (NSDQ:DXCM) shares are surging today after the medical device company reported 3rd-quarter sales and earnings results that shattered expectations and affirmed its outlook for the rest of the year.
San Diego-based DexCom posted losses of $6.0 million, or 8¢ per share, on sales of $42.9 million for the 3 months ended Sept. 30, for a loss reduction of 65.3% on sales growth of 85.7% compared with Q3 2012.
Analysts on Wall Street were expecting losses of 13¢ per share on sales of $35.9 million for the quarter.
"Our financial results speak for themselves. During the 3rd quarter we achieved record sales, record margins and we were cash flow-positive," CEO Terrance Gregg told analysts during a conference call yesterday. "The 3rd quarter was a record-breaking quarter for DexCom, as we continue to execute on all aspects of our business via commercial, clinical, regulatory or with our R&D efforts – further evidence that our business model is scalable and is evolving the way we always said it would."
President & COO Kevin Sayer said DexCom’s adjusted profits would have been $3.5 million during the quarter, which translates to adjusted EPS of roughly 5¢.
"While we are not formally adjusting our full-year guidance at this time, we are confident that we’ll exceed the top end of our current range of $140 million in product revenue," Sayer told the analysts. "We expect our product revenue growth to begin to normalize a closer to 40% year-over-year as we’ve guided previously and we do not expect to exceed 50% year-over-year growth in Q4 2013."
DXCM shares surged to $32.96 apiece today as of about 11:30 a.m., up 21.0%, after logging a 52-week high of $33.73 each.