Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Earnings per share of -$0.19 were inline with the consensus estimate. Despite a 48% increase in revenue from the year-ago quarter, DexCom's operating loss increased by 7% because of a surge in operating expenses.
Now what: The higher operating loss on significantly higher revenue raises questions about the company's ability to grow into profitability. In the meantime, the number of shares outstanding will increase by about 8%, diluting net income by a similar amount. As long as the company continues to operate at a loss, the larger share count has the counterintuitive affect of reducing the per-share loss.
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