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Teladoc (TDOC) Guidance Reflects Solid Business in '16, '17

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Teladoc Inc. (TDOC - Free Report) , the first and the largest telehealth company in U.S., recently provided upbeat guidance for 2016 and 2017. The projected figures point to strong business growth and superior performance.

The company’s share price also tells a similar story. In 2016, the company lost 8.13%, but was better off than the Zacks categorized Medical Services industry’s loss of 13.3%. The share price decline was due to investors' weariness over net losses registered by the company over the past many quarters. Yet, the stock performed better than the sector, which gives hints of optimism over its ability to turn to profits very soon.

Also, so far this year, the stock has given a stupendous performance, gaining 9.4% compared with the 3.2% gain registered by the Zacks categorized Medical Services industry.



Coming back, the company disclosed that in 2016 it witnessed record annual visits and significant growth in its business driven by its premier consumer engagement capabilities, broad network and scalable platform. Also, the company said that it saw a good start to the New Year courtesy of a successful selling season and an increase in use of its services, which led to considerable membership growth.

For 2016, the company expects year-over-year increases of 59% to $123 million in revenues, 43% to 17.5 million in membership, 65% to 952,000 in total visits and 70 basis points to 5.4% in utilization.

For 2017, the company expects year-over-year increase (at the midpoint) of 48% in revenues to a range of $180–$185 million, of 27% in membership to a range of 21.5 million to 23.0 million, and of 50% in total visits to 1,400,000 to 1,450,000. It also expects to achieve a breakeven level for EBIDTA in the last quarter of the year.

A day earlier, the company announced its partnership with Analyte Health to provide lab diagnostics services through its telehealth platform to its members.

Teladoc carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Cancer Genetics, Inc. , INC Research Holdings, Inc. (INCR - Free Report) and PRA Health Sciences, Inc. . While Cancer Genetics sports a Zacks Rank #1 (Strong Buy), the other two stocks cary a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cancer Genetics beat expectations in three out of the last four quarters, with an average beat of 9.5%.

INC Research Holdings beat expectations in three out of the last four quarters, with an average beat of 8.21%.

PRA Health beat expectations in three out of the last four quarters, with an average beat of 7.48%.

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