Following the release of weak guidance and a dismal second-quarter revenue report, Dexcom’s shares saw a 40%+ drop on Friday, marking the biggest collapse in the company’s history.
The market value of the stock was wiped out as it dropped $43.85 to settle at $64. Preceding Friday, the largest decline was in September 2017, with a 33% one-day loss in shares. 2005 saw the launch of Dexcom on the stock market.
Dexcom’s sales rose by 15% to $1 billion from $871.3 million in the previous year. LSEG reports that analysts had anticipated $1.04 billion in revenue.
For investors, the prediction was the greater worry. In order to account for “certain unique items impacting 2024 seasonality,” Dexcom projects sales for the third quarter of $975 million to $1 billion, according to the press statement.
Dexcom reduced its revenue projection for the entire fiscal year from $4.20 billion to $4.35 billion to $4 billion to $4.05 billion as of the final quarter.
Source (CNBC)
