Apollo Endosurgery, Inc. :APEN-US: Earnings Analysis: Q4, 2016 By the Numbers : April 19, 2017

Apollo Endosurgery, Inc. reports financial results for the quarter ended December 31, 2016.

Highlights

  • Summary numbers: Revenues of USD 15.39 million, Net Earnings of USD -19.71 million.
  • Change in operating cash flow of -147.75% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings decline largely a result of non-operational activity, pretax margins improved from -33,497.98% to -126.82%.

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

2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 15.39 0.02 0.01 0.01 0.01
Revenue Growth (%YOY) 220209.15 -61.13 -98.76 -98.77 -99.24
Earnings (mil) -19.71 -3.7 -2.66 -1.95 -2.34
Earnings Growth (%YOY) -742.21 -66.28 0.36 29.81 63.2
Net Margin (%) -128.06 -15552.92 -28788.68 -20251.99 -33497.98
EPS -192.56 -46.59 -33.58 -25.41 -29.91
Return on Equity (%) -349.6 -330.63 -141.63 -80.69 -82.46
Return on Assets (%) -148.53 -266.43 -127.19 -73.15 -72.25

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, APEN-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if APEN-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 64,557.45% and earnings by -432.37% compared to the previous period.

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 year-on-year change in operating cash flow of -147.75% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

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 -33,498.15% to -35.43% and pretax margins widened from -33,497.98% to -126.82%.

EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Apollo Endosurgery, Inc.

Company Profile

Apollo Endosurgery, Inc. develops medical devices. It offers medical devices for bariatric and gastrointestinal procedures. The firm’s brands include Orbera, Lap-band SYSTEM and OverStitch. The company was founded by Christopher J. Gostout in 2006 and is headquartered in Austin, TX.

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