Zepp Health Reports Negative EPS of -$0.27 and Revenue of $93.9M

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Zepp Health ($NYSE:ZEPP), a healthcare technology and services company, recently reported an earnings per share of -$0.27 on a Non-GAAP basis, accompanied by total revenue of $93.9 million. The company provides a range of services, including data analytics, population health solutions, and strategic consulting, as well as cutting-edge technology to enable high-quality patient care. Zepp Health has partnerships with several major organizations in the healthcare industry, such as Walgreens Boots Alliance and Ascension Health.

Furthermore, Zepp Health has recently shifted its focus from providing services to providing technology solutions, which has led to increased expenses in research and development. Despite the challenging environment, Zepp Health is continuing to invest in its core products and services in order to remain competitive in the market.

Earnings

In its earning report of FY2022 Q4 ending December 31 2022, ZEPP HEALTH reported a total revenue of 1071.73M CNY and a net income loss of 75.55M CNY. Compared to the previous year, this marks a 35.5% decrease in total revenue and a 308.0% decrease in net income, resulting in an earnings per share (EPS) of -$0.27. Over the past three years, ZEPP HEALTH’s total revenue has fallen from 1972.54M CNY to 1071.73M CNY.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Zepp Health. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Zepp Health. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Zepp Health. More…

Key Ratios Snapshot

Some of the financial key ratios for Zepp Health are shown below. More…

Share Price

The company’s stock opened at $1.2 and closed at the same price, a 6.8% drop from the prior closing price of $1.3. Despite the negative results, executives have expressed confidence in the long-term prospects of the company, citing their commitment to innovation and product development as key sources of potential revenue growth in the future. Live Quote…

Analysis

At GoodWhale, we recently did a financial analysis of ZEPP HEALTH. After evaluating its financials, we determined that ZEPP HEALTH is a medium risk investment. We noticed there are 3 risk warnings in the balance sheet, cashflow statement, and financial journal. Our team identified that ZEPP HEALTH is highly leveraged, with a large portion of their assets tied up in long-term debt. Additionally, GoodWhale observed that they have an unsustainable working capital position and that their operating cash flow does not cover their expenses. We urge potential investors to review these risk warnings before investing in the company. To access our full analysis, please register with us. Our team is here to help you make informed decisions about your investments. More…

Peers

It is one of many health technology companies in the sector, including IDT International Ltd, Audeara Ltd, and Advanced Health Intelligence Ltd. These competitors are all striving to provide the best health and wellness solutions for their customers.

– IDT International Ltd ($SEHK:00167)

IDT International Ltd is a global leader in telecommunications and payments services. The company provides international calling, bulk SMS messaging and monetization services to its customers in over 200 countries and territories throughout the world. As of 2023, IDT International Ltd had a market cap of 49.4M, reflecting the confidence the market has in the sustainability and growth potential of the company. In addition, the company had a Return on Equity (ROE) of 17.69%, indicating that the company is generating profit from its investments and is doing a good job managing its assets.

– Audeara Ltd ($ASX:AUA)

Audeara Ltd is a medical device company that specializes in the development of innovative headphone technology to support hearing health. The company has a market capitalization of 10.75M as of 2023, indicating its current market value. Additionally, Audeara Ltd has a Return on Equity of -49.9%, which is lower than the industry average. This could be attributed to its recent struggles to gain market share and its lack of profitability over the last few years. Despite this, Audeara Ltd continues to focus on developing its innovative hearing health solutions, which may bode well for future market performance.

– Advanced Health Intelligence Ltd ($ASX:AHI)

Advanced Health Intelligence Ltd is a company that specializes in data analytics and software development for healthcare companies. The company has a market cap of 16.86M as of 2023, indicating its value as a publicly traded company. Its Return on Equity (ROE) of -89.24% is not ideal, suggesting that shareholders are not making much money from their investments in the company. However, this could be due to the company’s relatively new presence in the market.

Summary

Investing in Zepp Health stock may be a risky proposition, due to its reported Non-GAAP EPS of -$0.27 and revenue of $93.9M for the reported period. This news caused the stock to move down the same day, indicating investor confidence in the company is low. Further analysis of the company’s financials, capital structure, competitive environment, and corporate strategy should be performed before committing to an investment decision. Investors should be aware of potential upside as well as downside risks associated with such an investment.