Apollo Medical Posts Earnings Beat, Revenue Misses Estimates
November 10, 2023
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Apollo Medical ($NASDAQ:AMEH) Holdings, Inc. (APOLLO MEDICAL) recently reported their earnings for the most recent quarter. While the company posted a beat on their earnings expectations, coming in at $0.14 higher than had been predicted, their revenue fell short of estimates. Despite this, the stock price rose on the news, as investors viewed the earnings beat as a positive sign. APOLLO MEDICAL is a health care services organization focused on primary and urgent care, patient centered medical home services, and an array of specialty services. The company’s core business is to provide comprehensive medical care services to patients through its network of primary and specialty care physicians.
With operations in California, Arizona, Nevada, and Washington, APOLLO MEDICAL seeks to improve the health and well-being of patients in many of the nation’s most populous states. Despite missing their revenue estimates for the quarter, APOLLO MEDICAL still posted strong numbers overall. With their earnings beat and a strong performance in other areas, APOLLO MEDICAL has shown that it is well positioned to continue to grow and succeed in the future.
Earnings
APOLLO MEDICAL reported earnings for its FY2023 Q2 as of June 30 2021. It posted a total revenue of 175.64M USD, a 34.9% decrease from the same quarter in the previous year. Net income, however, saw a rise of 11.1% to 12.66M USD.
Over the last 3 years, APOLLO MEDICAL’s total revenue reached from 175.64M USD to 348.21M USD, showing a steady growth in revenue. Despite the revenue miss in this quarter, investors may be encouraged by the increasing net income.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Apollo Medical. More…
| Total Revenues | Net Income | Net Margin |
| 1.3k | 49.69 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Apollo Medical. More…
| Operations | Investing | Financing |
| 65.81 | -7.11 | -20.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Apollo Medical. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.03k | 442.9 | 12.16 |
Key Ratios Snapshot
Some of the financial key ratios for Apollo Medical are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.9% | 40.7% | 8.8% |
| FCF Margin | ROE | ROA |
| 3.5% | 12.7% | 7.0% |
Share Price
On Thursday, APOLLO MEDICAL released their earnings report for the quarter and posted an earnings beat but missed on revenue estimates. The company opened at $32.1 per share on the day of the announcement, but closed at $30.4, down by 5.0% from their previous closing price. Despite the earnings beat, investors were disappointed by the company’s low revenue, leading to a significant drop in the stock price. It is clear that investors are looking for a more successful top and bottom line performance from APOLLO MEDICAL in order to remain confident in the company’s growth potential. Live Quote…
Analysis
GoodWhale analysed the wellbeing of APOLLO MEDICAL and our Star Chart showed that APOLLO MEDICAL has an impressive health score of 9/10 with regard to its cashflows and debt. This suggests that they are in a good position to sustain future operations in times of crisis. We classified APOLLO MEDICAL as a ‘cheetah’, a company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its strength in growth, medium asset, profitability and weak dividend, we would suggest that APOLLO MEDICAL may be of interest to investors looking for a higher-risk investment opportunity offering potentially higher returns. More…
Peers
The healthcare industry is highly competitive, with Apollo Medical Holdings Inc competing against some of the largest companies in the world.
However, Apollo has been able to maintain a strong position in the industry through its innovative products and services. The company has a strong focus on research and development, which has allowed it to bring new and innovative products to market. Additionally, Apollo has a strong marketing and sales force that has helped it to gain market share.
– HealthCare Global Enterprises Ltd ($BSE:539787)
HealthCare Global Enterprises Ltd has a market cap of 41.71B as of 2022, a Return on Equity of 13.62%. The company is a leading provider of healthcare services in India with a network of over 30 hospitals across the country. The company offers a comprehensive range of services including medical and surgical care, diagnostics, and preventive healthcare.
– Cano Health Inc ($NYSE:CANO)
Cano Health Inc is a healthcare services company that operates primary care and specialty care clinics in the United States. The company has a market cap of 828.58M as of 2022 and a Return on Equity of -2.88%. Cano Health Inc provides healthcare services to patients through its network of primary care and specialty care clinics. The company offers a range of services including primary care, specialty care, and behavioral health services. Cano Health Inc also provides pharmacy services and operates a laboratory.
– Dhanvantri Jeevan Rekha Ltd ($BSE:531043)
Dhanvantri Jeevan Rekha Ltd is a publicly traded company with a market cap of 64.14M as of 2022. The company’s Return on Equity is 3.31%. Dhanvantri Jeevan Rekha Ltd is engaged in the business of providing healthcare services in India. The company offers a wide range of services including medical consultation, diagnostics, surgery, and other treatments.
Summary
Apollo Medical Holdings, Inc. (APLO) reported its earnings for the first quarter of 2021, beating estimates by $0.14 per share.
However, revenue fell short of expectations, resulting in some investor skepticism. This was reflected in a decline in the stock price on the same day of the earnings announcement. Analysts are keeping an eye on developments with Apollo Medical, as the company is facing rising costs associated with investments and acquisitions, as well as the potential for changes in Medicare reimbursement rates. Nonetheless, the company’s strong fundamentals and impressive track record of growth have kept investors interested. Apollo Medical’s focus on primary care should also continue to benefit the company, as more Americans seek out healthcare services due to the pandemic. Investors may want to consider keeping an eye on the company’s developments and future earnings reports.
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