What: Shares of Dexcom (NASDAQ:DXCM), a company that makes continuous glucose monitors that help people with diabetes monitor their blood glucose levels, were up more than 13% this morning after the company releases preliminary results for its third quarter.
So what: The company expects to report third quarter revenue of roughly $105 million, which would be a 52% jump over the year ago period. That number is far higher than analysts were expecting, as the pros were modeling for revenue only landing around $97 million during the period.
Investors cheered the revenue beat, sending shares much higher today.
Now what: Customers apparently are thrilled with the company's new system, called the G5 mobile, as Kevin Sayer, Dexcom's President and Chief Executive Officer, noted in the release:
Demand for our G5 Mobile system has been overwhelming and our pipeline of new patient opportunities is larger than it has ever been. We have worked diligently to fulfill demand by new patients, we have commenced shipping upgrades to existing patients and we expect to complete the upgrade cycle before the end of 2015.
Chances are good that the good times will continue to roll for the company as well, as both Tandem Diabetes and Animas, a division of Johnson & Johnson, have received FDA approval to sell insulin pumps that talk directly to Dexcom's sensor, which is a key feature that up until recently Medtronic's diabetes division has had all to itself.
Once again, Dexcom simply knocked the cover off the ball. Investors with an interest in the diabetes space might want to consider adding a few shares of this long term winner to their portfolio.
Brian Feroldi has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.