(Reuters) – Medical device maker Dexcom Inc on Thursday raised its annual revenue forecast after strong demand for its continuous glucose monitoring (CGM) systems boosted second-quarter results, lifting its shares up about 3% in aftermarket trading.
The company now expects revenue of $3.5 billion to $3.55 billion, compared with its previous range of $3.4 billion to $3.52 billion. Analysts estimate annual sales of $3.5 billion, according to Refinitiv data.
Quarterly sales rose 25% to $871.3 million, beating estimates of $841.6 million.
Larger peer Abbott had also posted strong sales for its CGM system, FreeStyle Libre. CGM systems track blood sugar levels throughout the day and can transmit glucose readings as frequently as five minutes.
The recently expanded Medicare health insurance coverage for CGM systems unlocks a very large patient population, said Robert W. Baird analyst Jeff Johnson ahead of earnings.
“Overall, a solid quarter, especially as we’re in the early stages of basal-only CMS (Centers for Medicare & Medicaid Services) coverage beginning to impact U.S. growth, so this would seem to suggest we might even see faster growth out of DXCM (Dexcom) at some point down the road as basal-only contributions grow over the next few quarters,” Johnson said on Thursday.
Excluding items, the company made a quarterly profit of 34 cents per share, compared with estimates of 23 cents.
(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)
