DexCom Shares Got Crushed: What You Need to Know

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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.

What: Shares of DexCom (NAS: DXCM) have gotten crushed today, down 25%, after the company reported quarterly earnings last night.

So what: The medical device company brought in revenue of $18.3 million, which resulted in a net loss of $0.20 per share. Both figures were below the consensus estimates of $19 million in sales and a net loss of $0.16 per share.

Now what: The gloomy figures triggered a number of analyst downgrades, such as SunTrust Robinson Humphrey, who downgraded the stock from "neutral" to "reduce," and Morgan Keegan, who downgraded it from "outperform" to "market perform." In contrast, Canaccord Genuity is keeping its "buy" rating while adjusting its estimates, but believes DexCom is still well positioned. Expectations aside, the company is still growing top-line revenue at an admirable pace, 56% over last year.

Interested in more info on DexCom? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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