Apollo Endosurgery's Earnings: A Preview

Apollo Endosurgery APEN announces its next round of earnings this Thursday, February 25. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Apollo Endosurgery's per-share loss will be near $0.25 on sales of $11.01 million, according to Wall Street analysts. In the same quarter last year, Apollo Endosurgery announced EPS of $0.34 on revenue of $11.99 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 26.47%. Revenue would be down 8.17% from the year-ago period. Here is how the Apollo Endosurgery's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.21 -0.33 -0.45 -0.38
EPS Actual -0.11 -0.30 -0.49 -0.34
Revenue Estimate 9.98 M 5.19 M 8.73 M 12.45 M
Revenue Actual 12.83 M 5.64 M 10.72 M 11.99 M

Stock Performance

Over the last 52-week period, shares are up 73.21%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Apollo Endosurgery is scheduled to hold the call at 16:30:00 ET and can be accessed here.

Posted In: BZI-EPEarnings