BioTech

Endologix, Inc. (NASDAQ:ELGX) Revises Guidance

Endologix, Inc. (NASDAQ:ELGX)

Endologix, Inc. (NASDAQ:ELGX)

Endologix, Inc. (NASDAQ:ELGX) stock price rose over 3% and ended the day at $3.18 before the company reported Q2 2017 revenues and revised guidance. Q2 revenue was $48.6 million, a 4.7% decrease from $51.0 million in Q2 2016. U.S. revenue in the second quarter of 2017 was $31.9 million, a 12.1% decrease from U.S. revenue of $36.3 million in Q2 2016. International revenue was $16.7 million, a 13.3% increase from International revenue of $14.7 million in Q2 2016. On a constant currency basis, second quarter 2017 International revenue increased 14.8%.

Endologix, Inc. (NASDAQ:ELGX)
One month daily candlebar chart for ELGX

As a result of lower than expected U.S. sales and sales force attrition, Endologix reduced its previously issued financial guidance. Endologix, Inc. (NASDAQ:ELGX) now anticipates 2017 revenue in the range of $185 million to $190 million, compared to the previous range of $193 million to $200 million, representing a reported decrease of 2% to 4% compared to 2016. As a result, Endologix, Inc. (NASDAQ:ELGX) now anticipates 2017 GAAP loss per share in the range of $(0.91) to $(0.95), compared to its prior guidance of a GAAP loss per share in the range of $(0.83) to $(0.86). This revised guidance also reflects increased interest expense related to the aforementioned $120 million term loan and $25 million draw under the Company’s revolver. Additionally, Endologix now expects full-year operating expenses of approximately $170 million, compared to the prior guidance range of $170 million to $175 million.

Endologix, Inc. (NASDAQ:ELGX) develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms globally. It offers minimally-invasive endovascular repair products, including Anatomical Fixation endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the ovation abdominal stent graft system.

Endologix, Inc. (NASDAQ:ELGX) stock has not performed well despite increasing year-on-year sales. EGLX stock is down over 15% YTD and down almost 65% for the year. This despite sales increasing from $153.6 million in 2015 to $192.9 million in 2016. Earnings have been tougher to come by and 2016 was the worst yet for shareholders as the company posted a per share loss of (-$1.91). Still, five investment firms rate EGLX shares as a “Strong Buy” while four rates the shares as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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