Apollo Endosurgery, Inc. :APEN-US: Earnings Analysis: Q3, 2017 By the Numbers : November 1, 2017

Apollo Endosurgery, Inc. reports financial results for the quarter ended September 30, 2017.

We analyze the earnings along side the following peers of Apollo Endosurgery, Inc. – Gilead Sciences, Inc. and Merck & Co., Inc. (GILD-US and MRK-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 16.54 million, Net Earnings of USD -4.90 million.
  • Year-on-year change in operating cash flow of -239.33% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings decline largely a result of non-operational activity, pretax margins improved from -15,552.92% to -29.30%.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 16.54 17.14 14.62 15.39 0.02
Revenue Growth (%YOY) 69392.17 185294.35 152085.68 220209.15 -61.13
Earnings (mil) -4.9 -6.86 -8.22 -19.71 -3.7
Earnings Growth (%YOY) -32.39 -157.73 -322.29 -742.21 -66.28
Net Margin (%) -29.63 -40.02 -56.2 -128.06 -15552.92
EPS -0.32 -0.64 -0.77 -35.01 -8.47
Return on Equity (%) -11.54 -21.92 -21.37 -87.4 -82.66
Return on Assets (%) -19.59 -31.39 -34.47 -148.53 -266.43

Access our Ratings and Scores for Apollo Endosurgery, Inc.

Market Share Versus Profits

Revenues History
Earnings History

APEN-US’s change in revenue this period compared to the same period last year of 69,392.17% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that APEN-US is holding onto its market share. Also, for comparison purposes, revenues changed by -3.45% and earnings by 28.52% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

APEN-US’s change in operating cash flow of -239.33% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings


The company’s earnings decline is largely a result of non-operational activity. As a matter of fact, the company showed increases in operating (EBIT) and pretax margins. EBIT margins improved from -8,553.34% to -25.90% and pretax margins widened from -15,552.92% to -29.30%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Apollo Endosurgery, Inc.

Company Profile

Apollo Endosurgery, Inc. is a medical technology company, which engages in the design, development, and commercialization of medical devices. It offers medical devices for bariatric and gastrointestinal procedures under the Orbera, Lap-band SYSTEM, and OverStitch brands. The company was founded by Christopher J. Gostout in 2006 and is headquartered in Austin, TX.

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