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Will Teladoc (TDOC) Q1 Earnings Buoy On Severe Flu Season?
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Teladoc Inc. (TDOC - Free Report) is scheduled to announce first-quarter 2018 results on May 1, after the closing bell. Its quarterly revenues are expected to improve year over year.
We expect Teladoc’s first-quarter earnings to see earnings upside from the recent flu season (which started from October-November and lasted through March) and is touted to be the most severe epidemic in a decade. This severe flu season must have driven healthcare utilization,which should increasetotal visits at the company. In fact, the company expects the flu season to lift its first-quarter visits by 10%.
Earnings Surprise History
The company does not have an attractive earnings surprise history, having missed estimates in three of the trailing four quarters, with an average negative surprise of 8.4%. This is depicted in the chart below:
Our proven model indicates that chances of Teladoc beating the Zacks Consensus Estimate is high as it has the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Teladoc is +3.63%.
Zacks Rank: Teladoc has a Zacks Rank #3, which increases the predictive power of ESP.
Factors to Affect Q1 Results
The company’s Telehealth services are gaining rapid acceptance due to their flexibility, cost effectiveness and superior quality, which are driving demand. Consequently, the company witnessed increased patient visits in the first quarter. Also, the acquisition of HealthiestYou and Best Doctors have driven visits and call volumes and the trend must have continued in the quarter under review. The Zacks Consensus Estimate for patient visits is 555,950, reflecting an improvement of 44.5% year over year.
A major component of the company’s revenues is subscription access fees, which account for 80-85% of revenues. We expect a surge in this revenue component driven by the number of clients and services used.
The company’s efforts on consistently gaining clients by virtue of its superior service, a wide network of doctors and round-the-clock medical assistance, cross-selling multiple services to clients should give a boost to subscription service. In the fourth quarter of 2017, the same was up 115% year over year.
The company expects adjusted EBITDA to dip to negative in the first quarter due to costs of onboarding new members and the activation of several of the company’s material new contracts.
Company’s Guidance for Q1
For the first quarter of 2018, the company expects total revenues between $86 million and $88 million, an EBITDA loss between $12 million and $13 million, an adjusted EBITDA loss between $2.5 million and $3.5 million, total U.S. paid membership of approximately 19.5 million to 20 million members and total visits between 575,000 and 625,000 visits. Net loss per share based on 61.9 million weighted average shares outstanding is expected to range from a loss of 43 cents to a loss of 45 cents.
Other Stocks to Consider
Here are some other companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Humana Inc. (HUM - Free Report) is expected to report first-quarter 2018 earnings results on May 2. The company has an Earnings ESP of +0.31% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aetna Inc. has an Earnings ESP of +0.43% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 1.
WellCare Health Plans, Inc. has an Earnings ESP of +3.15% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on May 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Will Teladoc (TDOC) Q1 Earnings Buoy On Severe Flu Season?
Teladoc Inc. (TDOC - Free Report) is scheduled to announce first-quarter 2018 results on May 1, after the closing bell. Its quarterly revenues are expected to improve year over year.
We expect Teladoc’s first-quarter earnings to see earnings upside from the recent flu season (which started from October-November and lasted through March) and is touted to be the most severe epidemic in a decade. This severe flu season must have driven healthcare utilization,which should increasetotal visits at the company. In fact, the company expects the flu season to lift its first-quarter visits by 10%.
Earnings Surprise History
The company does not have an attractive earnings surprise history, having missed estimates in three of the trailing four quarters, with an average negative surprise of 8.4%. This is depicted in the chart below:
Teladoc, Inc. Price and EPS Surprise
Teladoc, Inc. Price and EPS Surprise | Teladoc, Inc. Quote
Why a Likely Positive Surprise?
Our proven model indicates that chances of Teladoc beating the Zacks Consensus Estimate is high as it has the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Teladoc is +3.63%.
Zacks Rank: Teladoc has a Zacks Rank #3, which increases the predictive power of ESP.
Factors to Affect Q1 Results
The company’s Telehealth services are gaining rapid acceptance due to their flexibility, cost effectiveness and superior quality, which are driving demand. Consequently, the company witnessed increased patient visits in the first quarter. Also, the acquisition of HealthiestYou and Best Doctors have driven visits and call volumes and the trend must have continued in the quarter under review. The Zacks Consensus Estimate for patient visits is 555,950, reflecting an improvement of 44.5% year over year.
A major component of the company’s revenues is subscription access fees, which account for 80-85% of revenues. We expect a surge in this revenue component driven by the number of clients and services used.
The company’s efforts on consistently gaining clients by virtue of its superior service, a wide network of doctors and round-the-clock medical assistance, cross-selling multiple services to clients should give a boost to subscription service. In the fourth quarter of 2017, the same was up 115% year over year.
The company expects adjusted EBITDA to dip to negative in the first quarter due to costs of onboarding new members and the activation of several of the company’s material new contracts.
Company’s Guidance for Q1
For the first quarter of 2018, the company expects total revenues between $86 million and $88 million, an EBITDA loss between $12 million and $13 million, an adjusted EBITDA loss between $2.5 million and $3.5 million, total U.S. paid membership of approximately 19.5 million to 20 million members and total visits between 575,000 and 625,000 visits. Net loss per share based on 61.9 million weighted average shares outstanding is expected to range from a loss of 43 cents to a loss of 45 cents.
Other Stocks to Consider
Here are some other companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Humana Inc. (HUM - Free Report) is expected to report first-quarter 2018 earnings results on May 2. The company has an Earnings ESP of +0.31% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aetna Inc. has an Earnings ESP of +0.43% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 1.
WellCare Health Plans, Inc. has an Earnings ESP of +3.15% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on May 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>