Gross Margin ImpactQ4 gross margin is approximately 60%, which is below the estimated 63.5% due to inventory damage and production yield issues.
Market PerformanceThe stock suffered in after-hours trading from the year-over-year decline in US revenue, which also missed estimates, making it tougher to ease investor fears of a slowing market.
Revenue DeclineDXCM's 2% U.S. revenue decline was several points worse than expected, with price and mix headwinds reaching an all-time high, indicating it could take several quarters before U.S. growth returns to double-digits.