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Dexcom beats profit estimates on strong demand for glucose monitors

(Reuters) - Glucose monitor maker Dexcom beat analyst estimates for fourth-quarter earnings on Thursday, helped by strong demand for its continuous glucose monitoring (CGM) systems.

Sales of the monitors, which compete with Abbott's FreeStyle Libre devices, rose 27% to $1.03 billion in the three months ended Dec. 31, compared with estimates of $1.02 billion, according to LSEG data.

CGM devices help keep track of blood glucose levels throughout the day, transmitting glucose readings as frequently as five minutes.

Abbott also reported strong demand for its CGM device, FreeStyle Libre, when it reported results in January.

Excluding items, Dexcom posted a profit of 50 cents per share in the fourth quarter, above analysts' average estimate of 43 cents.

Still, Dexcom only reiterated its 2024 forecast of $4.15-$4.35 billion, given in January. Analysts are expecting annual sales of $4.33 billion.

Shares of the company were down 1.5% at $125.1 in after-market trading.

Shares of Dexcom took a brief hit in late-2023 as investors fretted over the impact of GLP-1 drugs on the market for CGMs. However, the stock has risen steadily since then, as the cardiac benefits of Novo Nordisk's Wegovy was seen as moderate, giving relief to investors.

Earlier this year, Dexcom said it expects to launch Stelo, its new sensor designed for people with type 2 diabetes who do not use insulin, in the United States in the summer of 2024.

It submitted the device to the U.S. FDA in the previous quarter.

(Reporting by Unnamalai L in Bengaluru; Editing by Shinjini Ganguli)