In a surprising turn of events, shares of Dexcom Inc. ( DXCM ) took a nosedive in pre-market trading following the company’s decision to lower its full-year sales forecast for glucose monitoring devices.

What Happened: The company’s shares plummeted 38.28% in pre-market trading. At the time of writing, it was trading at $66.59 after closing at $107.85 on Thursday, according to Benzinga Pro.

The San Diego-based medical device manufacturer has revised its revenue forecast for 2024, now expecting to generate between $4 billion and $4.05 billion. This is a significant drop from the previous estimate of $4.2 billion to $4.35 billion.

During an analyst call, Dexcom ( DXCM ) executives attributed the forecast cut to fewer new customers and lower revenue per customer than expected, following a salesforce revamp. Despite these challenges, CEO Kevin Sayer remains confident that the company’s long-term target for 2025 is still within reach.

Revenue was also negatively impacted by higher rebates as some large health plans administering government programs altered their reimbursement methods for Dexcom’s products. Additionally, the expanded salesforce had a slower start than anticipated.

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Why It Matters: Dexcom ( DXCM ) reported mixed second-quarter results and weak forward guidance. The company’s quarterly earnings of 43 cents per share beat the analyst consensus estimate of 39 cents by 10.26%. However, its quarterly sales of $1.004 billion missed the analyst consensus estimate of $1.036 billion by 3.13%, representing a 15.23% increase over the same period last year.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari