Proactive Investors - Run By Investors For Investors

Endologix stock extends rally after reporting sterling 3Q revenue and raised guidance

A preliminary report showed higher third-quarter revenue
heart image
Endologix develops and manufactures minimally invasive treatments for aortic disorders

Shares of Endologix Inc (NASDAQ:ELGX) rose on Wednesday after releasing a preliminary report which showed higher third-quarter revenue and improved revenue guidance for the year.

The company said unaudited third-quarter revenue ranged from $34.3 million to $34.7 million, higher than expectations it would hover between $29.5-$33.6 million. It guided for higher 2018 revenue of between $150-$155 million, compared with the previous range of $145-$155 million.

The shares climbed 19.8% to $2.06 in the premarket, having risen in after-hours trading on Tuesday as well.

READ: Amarin shares soar after fish oil tablet pares back risks of heart disease in trial

Oppenheimer Equity Research analyst Steven Lichtman said in a note to clients the company outlined plans to return to top-line growth in the second half of 2019.

"As part of this transformation, ELGX has completed its planned restructuring in the US which saw a reduction in sales force, and realignment of resources with an emphasis on high-volume accounts," he said.

The company's focus is on endovascular stent grafts for the treatment of abdominal aortic aneurysms (AAA).

AAA leads to a weakening of the wall of the aorta, the largest artery in the body, resulting in a balloon-like enlargement.

Once AAA develops, it continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture, a company statement said. The overall patient mortality rate for a ruptured AAA is approximately 80%, making it a leading cause of death in the United States.

Endologix develops and manufactures minimally invasive treatments for aortic disorders. The company is based in Irvine, California.

View full ELGX profile View Profile

Endologix Inc Timeline

Related Articles

October 17 2018
The biotech was founded by an investment group led by scientists and driven by a no-nonsense CEO whose stake is more than just business as usual
Scientist at work
May 28 2019
CaPre, a potent form of Omega-3, has been shown to reduce triglycerides, but also lower 'bad cholesterol' levels, and raise 'good' ones
A double helix and a medical person
March 06 2019
Leronlimab, according to the company, is an antiviral agent candidate with fewer side effects, lower toxicity and less frequent doses than daily HIV therapies now in use
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use