About the Company
Headquartered in Irvine, California,
develops, manufactures, markets and sells minimally invasive
treatments for vascular diseases. Its main product is an
endoluminal stent graft system used for the treatment of
abdominal aortic aneurysms (AAA).
Disappointing Fourth Quarter Results and 2014
The company reported its Q4 results on February 27. Global
revenue for the quarter was up 21% from the prior year quarter
but sales were up only 8% in the US. According to the management,
softness was mainly due to a pullback from some of the centers
that didn't get selected for the Nellix IDE trial, the delay in
the Ventana program and increased competitive activity.
GAAP net loss was $3.4 million or $0.05 per share in the quarter
compared to a net loss $6.5 million or $0.11 per share for the
fourth quarter of 2012.
The company expects Q1 2014 sales to be sequentially down from Q4
2013, due to weak start to the year. They also revised down
their guidance for FY 2014 sales growth to an 11% to 15% range.
After disappointing guidance, estimates for the company have
moved downwards. Zacks Consensus Estimates for the current year
and next year are now down to ($0.24) per share and ($0.04) per
share respectively, from ($0.01) per share and $0.27 per share,
30 days back.
Declining estimates sent ELGX to a Zacks Rank #5 (Strong Sell).
Investors interested in the Medical sector, could consider some
better-ranked stocks including
Align Technology Inc.
CR Bard Inc.
Becton, Dickinson and Company
(BDX). All these stocks hold a Zacks Rank #2
While the company has a significant long-term potential both
in the US and globally, with its unique products portfolio,
near-term uncertainty in the US will keep the stock under
pressure for the time being.
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ENDOLOGIX INC (ELGX): Free Stock Analysis
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