DexCom Inc (NASDAQ:DXCM, ETR:DC4), a medical device maker that produces continuous glucose monitoring systems for diabetes management, shares plunged by more than 40% after the company slashed its annual revenue forecast.
The company now expects full-year revenue of $4 billion to $4.05 billion, representing organic growth between 11% and 13%, down from its earlier forecast of $4.2 billion to $4.35 billion.
Wall Street analysts were expecting $4.33 billion.
The company’s 3Q revenue guidance of $975 million to $1 billion also fell short of the $1.15 billion expected by the Street.
For Q2, revenue increased 15% year-over-year to $1 billion, missing estimates of $1.03 billion.
Adjusted earnings per share of $0.43, however, topped estimates of $0.39.
“While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,” DexCom CEO Kevin Sayer commented.
Shares of DexCom traded down 40.5% at about $64 late morning on Friday.