NEW YORK, NY / ACCESSWIRE / August 3, 2018 / DexCom and Exact Sciences Corporation went in separate directions after reporting second quarter results. DexCom exploded and hit a new high after reporting an earnings beat while Exact Sciences slipped almost 13% after missing its revenue expectations.
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Exact Sciences Corporation
DexCom, Inc. shares closed up 30.65% on nearly 7 million shares traded. The stock soared to a new high of $125.65 after reporting second quarter earnings that beat estimate. The maker and distributor of glucose monitoring systems for diabetes management, reported losses of 10 cents a share. This was better than the 14 cents seen in the same quarter a year ago and was better than the 18 cents that Wall Street was waiting for. Net income of $30.20 million was also an increase compared to the year ago period. Revenue of $242.50 million was also an increase from its revenue of $170.60 million that was reported in the second quarter of the previous year and was also above analysts’ revenue estimate of $221.15 million. CEO Kevin R. Sayer said during the call, I'm proud to say that we posted another record revenue performance, with sales up 42% over the same period last year. Not only did we exceed our annual growth guidance for the second consecutive quarter, but the business continues to accelerate. All of our key segments demonstrated strong year-over-year growth, with U.S. and OUS revenues up 35% and 78%, respectively." He added, "From a profitability perspective, DexCom continues to demonstrate leverage as revenue growth outpaced the increase in operating expenses by more than 2x for the first half of the year."
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Exact Sciences Corporation shares closed down 12.67% on a little over 15 million shares traded on Thursday. The maker of the Colorguard stool DNA-based colorectal cancer take-home test, saw its shares drop after missing revenue projections in its second quarter. While the company saw a 78% jump in revenue, it was still behind what analysts had been expecting. Exact Sciences reported results after the bell on Wednesday, revealing revenue of $102.9 million, and a net loss of $36.4 million, or 30 cents a share. Revenue was missed by $1.8 million. Shares saw a 21% drop in after-hours trading after the reveal. CEO Kevin T. Conroy remained optimistic and stated during the call, "The Exact Sciences team delivered strong second quarter results, with record high revenue, Cologuard test volume and gross profit. Demand accelerated broadly within our existing physician ordering base and from new customers, with more than 10,000 physicians and other health care providers ordering their first Cologuard test. Better-than-expected revenue per test largely offset a 2% shortfall compared to the low end of our volume guidance and kept us on prep for our 2018 revenue goals. We remain confident in our ability to capture the long-term opportunity for Cologuard and are building a solid foundation to support sustainable growth and profitability."
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