Shares in Endologix (NSDQ:ELGX) slipped by 8% to $6.06 apiece in midday trading today following yesterday’s second-quarter results that beat The Street on earnings expectations and sales.
The Irvine, Calif.-based company reported a net loss of $27.1 million or -$1.50 per share on sales of $36.24 million for the three months ended June 30, 2019, for a loss of 13.6% on sales that fell by 19% compared with Q2 2019.
Adjusted to exclude one-time items, earnings per share were –$0.37, 43¢ ahead of The Street, where analysts were looking for sales of $36.09 million.
“We are pleased with our second-quarter results, as stronger execution led to a sequential improvement in revenue,” said CEO John Onopchenko in a news release. “Our culture of accountability is yielding tangible results, and our team continues to steadily leverage a growing body of clinical evidence to rebuild credibility in the marketplace. We are excited about the progress we made during the first half of the year against both our near- and long-term targets, providing us confidence in our full-year outlook. We will remain focused on execution as we continue to take meaningful and necessary steps to position the Company for sustainable long-term success.”
EU notifying body GMED reinstated the CE Mark for Endologix’s Nellix stent graft system in June, following a suspension in January triggered by a halt to unrestricted sales of the stent grafts and a voluntary recall of all existing inventory. Nellix was designed for treating abdominal aortic aneurysms.
Nellix is only approved as an investigational device in the United States. The company’s Ovation Alto system is only approved as an investigational device and is not currently approved in any market.
In other news, the FDA yesterday gave Endologix an IDE exemption approval to begin a pivotal study on its Nellix Chimney endovascular aneurysm sealing device (ChEVAS) system. CheVAS was designed to combine the Nellix 3.5 endograft with parallel visceral stents to enable treatment of patients with juxta-renal, para-renal, and suprarenal abdominal aortic aneurysm.
The company also announced that it has named Boston Scientific (NYSE:BSX) its exclusive distributor in China.
“China is one of the largest and fastest-growing EVAR markets in the world, representing an exciting market opportunity for Endologix,” Onopchenko said in a separate news release. We look forward to building our brand in this important market by leveraging the Boston Scientific team’s extensive experience introducing new products for patients suffering from vascular disease.”
Endologix reaffirmed its previously issued annual guidance and continues to expect 2019 sales of at least $140 million. The company anticipates Q3 2019 sales of $35 million to $37 million and continues to expect full-year operating expenses of $130 million to $140 million.
The current consensus EPS estimate is -$0.72 on $34.31 million in sales for the Q3 2019 coming quarter and -$3.23 on $142.24 million in sales for the current fiscal year, according to a report by Zacks.
