'While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,' CEO says.
DexCom Inc., a maker of monitoring devices for diabetes patients, cut its full-year sales outlook on Thursday - a move that surprised some analysts and investors and sent its stock tumbling after hours - as the company deals with a shortfall in new patients and weaker trends abroad.
Shares of DexCom were down 36% after hours on Thursday, after holding steady through much of the year.
DexCom - which makes glucose-monitoring systems, some of which can connect to smartphones and other wearable devices like the Apple Watch - said it expected full-year sales of around $4 billion to $4.05 billion. That's down from an outlook in April for $4.2 billion to $4.35 billion.
"While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards," Chief Executive Kevin Sayer said in a statement.
During the company's earnings call, executives said the company was short "a large number of new patients" relative to where they thought they would be. They also cited snags it hit in its U.S. salesforce expansion, issues with rebate eligibility and a softer-than-expected performance internationally.
The forecast arrives as the company tries to capitalize on the rise of real-time monitoring technology. But DexCom's sales during the second quarter missed expectations, while its adjusted per-share profits beat.
Shares of DexCom are down 13% so far this year.
