Endologix shares slide on Q2 misses

Endologix (NSDQ:ELGX) shares slid after Endologix released 2nd quarterly earnings showing slipping profits and earnings coupled with meager sales growth.

Endologix reported losses of $13 million, a 19¢ loss per share, on sales of $39.5 million for the 3 months ended June 30. The numbers narrowly missed street sales estimates of $39.9 million.

That amounts to a 43.3% increase in losses on sales growth of 3% compared with the same quarter in 2014 for the Irvine, Calif.-based medical device company. Adjusted to exclude 1-time items, loss per share was 18¢, while Wall Street analysts were looking for an adjusted EPS of 13¢.

The news sent shares down in mid-day trading, dropping roughly 14.5% to $12.03 as of 2:45 p.m. EST.

“Sales of Nellix Systems set a new record in the second quarter, increasing 29% sequentially over the first quarter and 40% over the 2nd quarter of last year. These results reflect continued physician adoption of, and a growing interest in, Endovascular Aneurysm Sealing, or EVAS, with Nellix as a very promising new therapy for patients with abdominal aortic aneurysms. During the 2nd quarter, we also continued to advance clinical evidence in support of Nellix with the presentation of the 300 patient Nellix global registry at the Charing Cross Symposium and presentation of the initial 30-day results from the U.S. IDE clinical trial at the Society of Vascular Surgery meeting. The clinical data presented at these meetings continues to demonstrate positive safety and efficacy results, and the lowest rates of endoleaks ever reported in prospective clinical studies for endovascular aneurysm devices. These results together with an increasing customer base and positive physician feedback, give us confidence in our continued growth prospects.” CEO John McDermott said in a press release.

Endologix adjusted their guidance after releasing the earnings report, lowering their revenue expectations to between $154 and $157 million and growth expectations to 4-6%, according to the company.

Earlier guidance had revenue at $159 to $165 million, a growth of 8-12% over 2014. Loss per share guidance has been lowered 8¢ on a GAAP adjusted basis.

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