Dexcom shares plunge more than 40% after Q2 earnings [Video]

Dexcom shares sank more than 40% on Friday, their steepest decline ever, after the diabetes management company reported disappointing revenue for the second quarter and offered weak guidance.

The stock fell $43.85 to close at $64, wiping out more than $17 billion in market cap. Prior to Friday, the biggest drop came in September 2017, when the shares plunged 33% in a day. Dexcom held its stock market debut in 2005.

Dexcom’s revenue increased 15% to $1 billion from $871.3 million a year earlier, according to a release late Thursday. Analysts were expecting revenue of $1.04 billion, according to LSEG.

The bigger concern for investors was the forecast. For the third quarter, Dexcom expects revenue of $975 million to $1 billion to account for “certain unique items impacting 2024 seasonality,” the release said. Dexcom updated its full fiscal-year guidance and now expects revenue of $4 billion to $4.05 billion, down from the $4.20 billion to $4.35 billion …