May 1 (Reuters) - Medical device maker Dexcom ( DXCM )

beat first-quarter sales estimates helped by strong demand for

its continuous glucose monitors (CGMs) used by patients with

diabetes.

Shares of the company rose 3.26% to $72.55 in after market

trading.

Increasing diabetes care awareness, wider insurance

coverage, and preference for devices that do not need finger

pricks have benefited CGM devices such as Dexcom's ( DXCM ) Stelo and G7.

The San Diego, California-based company reiterated its

annual revenue forecast of $4.60 billion. Analysts on average

expect 2025 revenue of $4.61 billion, according to data compiled

by LSEG.

It expects annual gross profit margin of about 62%, compared

to between 64% and 65% expected previously.

This is due to incremental costs related to short-term

supply factors, which were previously announced, as the company

rebuilds its finished goods inventory to ideal levels, Dexcom ( DXCM )

said.

Last year, Dexcom's ( DXCM ) shares were hit after the company

slashed its annual revenue forecast, citing a restructuring of

its sales team, fewer customers and lower revenue.

The device maker is pinning its hopes on Stelo, which was

launched for adults aged 18 and older who do not use insulin,

making it the first CGM available for over-the-counter sales.

Earlier this month, the FDA cleared Dexcom's ( DXCM ) updated G7

15-day CGM.

Dexcom's ( DXCM ) first-quarter revenue increased 12% to $1.04

billion, beating analysts' estimates of $1.02 billion.

On an adjusted basis, the company earned a profit of 32

cents per share, compared to estimates of 33 cents per share.