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

A preliminary report showed higher third-quarter revenue
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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.

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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.

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