What happened

Shares of DexCom (DXCM 1.27%) were falling 5.2% lower as of 11:15 a.m. ET on Friday after sinking as much as 10.9% earlier in the day. The decline came after the diabetes-care technology company announced its second-quarter financial results after the market close on Thursday.

DexCom reported Q2 revenue of $696.2 million, up 17% year over year. However, the total was a little below the consensus Wall Street revenue estimate of $698.6 million.

The company announced Q2 net income of $50.9 million, or $0.12 per diluted share, based on generally accepted accounting principles (GAAP). This result was lower than the GAAP earnings of $78.4 million, or $0.19 per diluted share, in the prior-year period. DexCom posted non-GAAP (adjusted) earnings of $69.5 million, or $0.17 per diluted share. The average analysts' estimate was for non-GAAP earnings of $0.19 per share. 

Also, DexCom narrowed its full-year revenue guidance from between $2.82 billion and $2.94 billion to between $2.86 billion and $2.91 billion. The upper end of this revised range is slightly below the consensus full-year revenue estimate of $2.92 billion.

So what

Overall, DexCom delivered solid results in Q2. Those results just weren't quite up to what Wall Street expected. This shouldn't concern long-term investors.

The company also had a good reason for revising its revenue guidance. DexCom now expects roughly $40 million in foreign currency headwinds in 2022 compared with its previous estimate of between $15 million and $20 million.  

Now what

The most important thing for investors to focus on is DexCom's future prospects, especially with its new G7 continuous glucose monitor (CGM). There's good news and bad news on that front.

The bad news is that the company said that it's "making a subtle change to the G7 software based on feedback from the FDA." This will delay the company's U.S. launch of the product. The good news is that DexCom still expects to conduct a limited launch of the G7 CGM later in 2022 with a larger launch in early 2023. In addition, the company said that its preliminary talks with payers are going well.