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Earnings Beat: Apollo Endosurgery, Inc. (NASDAQ:APEN) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

Simply Wall St
·3 min read

Apollo Endosurgery, Inc. (NASDAQ:APEN) just released its latest quarterly results and things are looking bullish. Sales crushed expectations at US$13m, beating expectations by 29%. Apollo Endosurgery reported a statutory loss of US$0.11 per share, which - although not amazing - was much smaller than the analysts predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Apollo Endosurgery

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earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for Apollo Endosurgery from two analysts is for revenues of US$52.1m in 2021 which, if met, would be a huge 32% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to US$0.79. Before this latest report, the consensus had been expecting revenues of US$48.2m and US$0.91 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a loss per share in particular.

The consensus price target fell 9.1%, to US$5.00, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Apollo Endosurgery is forecast to grow faster in the future than it has in the past, with revenues expected to grow 32%. If achieved, this would be a much better result than the 14% annual decline over the past three years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 9.9% next year. Not only are Apollo Endosurgery's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Apollo Endosurgery. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Apollo Endosurgery going out as far as 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Apollo Endosurgery that you should be aware of.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.