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Will Revenue Growth Drive Teladoc (TDOC) Q2 Earnings Higher?
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Teladoc Inc. (TDOC - Free Report) is scheduled to announce second-quarter 2018 results on Aug 1, after the closing bell. Its quarterly revenues are expected to improve year over year.
Factors to Affect Q2 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 should have witnessed increased patient visits in the second quarter. An increase in patient visits should also buoy revenues from patient visits. Revenues from visits, which compriseGeneral Medical Visits and Other Specialty Visits, should see an uptick.
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 increase in number of clients and services used. The company’s revenues from U.S. Subscription Access Fees as well as International Subscription Access Fees should see growth.
Total operating expenses should increase in the second quarter due to a rise in expenditure on advertising & marketing, sales, technology & development, acquisition related costs, as well as depreciation & amortization costs. However, the company’s general and administrative expense, its single-largest operating expense declined in the first quarter and the company expects this trend to continue.
Company’s Guidance for Q2
For the second quarter of 2018, the company expects total revenues between $86 million and $87 million, adjusted EBITDA between $1.5million and $2.5 million, total U.S. paid membership of approximately 20.8 million to 21 million members and total visits between 450,000 and 500,000 visits. Net loss per share based on 62.6 million weighted average shares outstanding is expected to range from a loss of 35 cents to a loss of 37 cents.
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 8.35%. 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.
Earnings ESP: The Earnings ESP for Teladoc is +3.25%.
Zacks Rank: Teladoc has a Zacks Rank #3, which increases the predictive power of ESP.
Other Stocks to Consider
Here are some other companies that you may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Molina Healthcare, Inc. (MOH - Free Report) is expected to report second-quarter 2018 earnings results on Jul 31. The company has an Earnings ESP of +5.34% and a Zacks Rank #3 (Buy).
PRA Health Sciences, Inc. has an Earnings ESP of +2.13% and a Zacks Rank #2. The company is expected to report second-quarter earnings results on Aug 1.
Tenet Healthcare Corp. (THC - Free Report) has an Earnings ESP of +7.91% and a Zacks Rank #3. The company is expected to report second-quarter earnings results on Aug 6.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Will Revenue Growth Drive Teladoc (TDOC) Q2 Earnings Higher?
Teladoc Inc. (TDOC - Free Report) is scheduled to announce second-quarter 2018 results on Aug 1, after the closing bell. Its quarterly revenues are expected to improve year over year.
Factors to Affect Q2 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 should have witnessed increased patient visits in the second quarter. An increase in patient visits should also buoy revenues from patient visits. Revenues from visits, which compriseGeneral Medical Visits and Other Specialty Visits, should see an uptick.
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 increase in number of clients and services used. The company’s revenues from U.S. Subscription Access Fees as well as International Subscription Access Fees should see growth.
Total operating expenses should increase in the second quarter due to a rise in expenditure on advertising & marketing, sales, technology & development, acquisition related costs, as well as depreciation & amortization costs. However, the company’s general and administrative expense, its single-largest operating expense declined in the first quarter and the company expects this trend to continue.
Company’s Guidance for Q2
For the second quarter of 2018, the company expects total revenues between $86 million and $87 million, adjusted EBITDA between $1.5million and $2.5 million, total U.S. paid membership of approximately 20.8 million to 21 million members and total visits between 450,000 and 500,000 visits. Net loss per share based on 62.6 million weighted average shares outstanding is expected to range from a loss of 35 cents to a loss of 37 cents.
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 8.35%. 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.
Earnings ESP: The Earnings ESP for Teladoc is +3.25%.
Zacks Rank: Teladoc has a Zacks Rank #3, which increases the predictive power of ESP.
Other Stocks to Consider
Here are some other companies that you may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Molina Healthcare, Inc. (MOH - Free Report) is expected to report second-quarter 2018 earnings results on Jul 31. The company has an Earnings ESP of +5.34% and a Zacks Rank #3 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here
PRA Health Sciences, Inc. has an Earnings ESP of +2.13% and a Zacks Rank #2. The company is expected to report second-quarter earnings results on Aug 1.
Tenet Healthcare Corp. (THC - Free Report) has an Earnings ESP of +7.91% and a Zacks Rank #3. The company is expected to report second-quarter earnings results on Aug 6.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>