What happened

Investors in DexCom (NASDAQ:DXCM) are having a pleasant start to the day. Shares of the diabetes-focused medical device company jumped as much as 14% in early morning trading on Thursday after the company reported strong first-quarter results. The stock was up about 8% as of 10:22 a.m. EDT. 

So what

Here's a review of the key numbers from Dexcom's first quarter:

  • Revenue jumped 30% to $184.4 million. That was far higher than the $172.1 million in revenue that Wall Street had expected.
  • Non-GAAP net loss was $28.3 million, or $0.32 per share. That was a penny better than what analysts had projected. 
  • Cash balance at quarter end was $534 million.
Female doctor giving thumbs up.

Image source: Getty Images.

The strong start to the year caused management to raise its revenue guidance by $20 million for the full year. The company now expects revenue to land between $850 million to $860 million, which implies a growth rate of 19% at the midpoint.

Given the better-than-expected results and guidance boost, it is easy to understand why traders are feeling giddy.

Now what

Dexcom's stock has now fully recovered from the drubbing that it took in late 2017 after the FDA approved Abbott's new FreeStyle Libre System. Anyone who was smart enough to buy shares after the huge plunge has made a killing in a short period of time.

Can Dexom keep the momentum up? I'd argue that the answer is yes. The company just won FDA approval for its G6 system which boasts a number of improvements over its current system. In addition, the diabetes market is so huge that Dexcom should be able to continue growing quickly even if Abbott or Senseonics Holdings have successful product launches. 

Count me as a bull.

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.