Dexcom Shares Plummet Nearly 39% In Pre-Market After Lowering Full-Year Sales Outlook
Portfolio Pulse from Benzinga Neuro
Dexcom Inc. (NASDAQ:DXCM) shares plummeted nearly 39% in pre-market trading after the company lowered its full-year sales outlook for glucose monitoring devices. The revised revenue forecast for 2024 is now between $4 billion and $4.05 billion, down from the previous estimate of $4.2 billion to $4.35 billion. The forecast cut is attributed to fewer new customers, lower revenue per customer, and higher rebates due to changes in reimbursement methods by large health plans. Despite these challenges, CEO Kevin Sayer remains confident in the company's long-term targets for 2025.
July 26, 2024 | 12:03 pm
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Dexcom Inc. shares dropped nearly 39% in pre-market trading after the company lowered its full-year sales outlook for glucose monitoring devices. The revised revenue forecast for 2024 is now between $4 billion and $4.05 billion, down from the previous estimate of $4.2 billion to $4.35 billion. The forecast cut is due to fewer new customers, lower revenue per customer, and higher rebates from changes in reimbursement methods by large health plans.
The significant drop in Dexcom's share price is directly linked to the company's lowered full-year sales outlook and mixed second-quarter results. The revised revenue forecast and the reasons behind it, such as fewer new customers and higher rebates, have negatively impacted investor sentiment.
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