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NEW YORK (TheStreet) -- Apollo Global Management (APO) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APOLLO GLOBAL MANAGEMENT LLC (APO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- APO, with its very weak revenue results, has greatly underperformed against the industry average of 0.9%. Since the same quarter one year prior, revenues plummeted by 80.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market, APOLLO GLOBAL MANAGEMENT LLC's return on equity exceeds that of both the industry average and the S&P 500.
- APOLLO GLOBAL MANAGEMENT LLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, APOLLO GLOBAL MANAGEMENT LLC increased its bottom line by earning $3.97 versus $1.95 in the prior year. For the next year, the market is expecting a contraction of 56.7% in earnings ($1.72 versus $3.97).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 98.8% when compared to the same quarter one year ago, falling from $192.52 million to $2.21 million.
- The gross profit margin for APOLLO GLOBAL MANAGEMENT LLC is currently lower than what is desirable, coming in at 28.17%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.99% significantly trails the industry average.
- You can view the full analysis from the report here: APO Ratings Report