Back to top

Image: Shutterstock

Teladoc (TDOC) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

Teladoc Health, Inc. (TDOC - Free Report) is expected to report third-quarter 2021 results on Oct 28, after market close.

In the last reported quarter, the company’s loss per share of 86 cents was wider than the Zacks Consensus Estimate of 59 cents. The company’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average beat being 32.42%.

Let’s take a look at how things have shaped up prior to this announcement.

Factors at Play

Teladoc ended the second quarter of 2021 with healthy and consistent sales growth. The company’s continued efforts to innovate in virtual healthcare solutions, robust customer uptake of its offerings and a gradual move toward virtual healthcare platform with the growing uncertainty around the COVID-19 pandemic are likely to drive market share gains for the company, which is expected to reflect in third-quarter 2021 results.

Consumers and providers have started to show an increased reliance on Teladoc's virtual care from the last-reported quarter. In the second quarter, the company’s global network of clinicians delivered more than 3.5 million visits (up 28% from the prior year's quarter) despite more people obtaining vaccinations and restrictions being eased in many parts of the world. Further, with the emergence of more contagious and lethal strains of COVID-19, the virtual care business is again likely to see growth in the to-be reported quarter. This is reflected in the company’s guidance as it expects total visits to lie between 3.4 million and 3.6 million in the third quarter, representing year-over-year growth in the range of 20-27%.Meanwhile, the company anticipates total U.S. paid membership in the range of 52-53 million members, with visit fee-only access to be available to about 22 million people in the third quarter.
As consumers and providers continue to recognize the benefits of the virtual modality for mental healthcare, robust acceptance of the company's mental health services is expected to have contributed to growth in the third quarter, as it did in the previous quarter.

Teladoc Health, Inc. Price and EPS Surprise

Teladoc Health, Inc. Price and EPS Surprise

Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote

In mid-July, Teladoc entered into a partnership with Microsoft, in which the company’s Solo platform for hospitals and health systems will be integrated into the Microsoft Teams environment. This integration will enable clinicians to access the Solo platform, including its virtual care workflows, data and tools, without leaving the Teams environment. This partnership is intended to improve physician and patient access to best-in-class virtual healthcare and is expected to be a potential growth driver.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter 2021 revenues is pegged at $516.66 million, suggesting a 78.89% surge over the year-ago reported figure.

The Zacks Consensus Estimate for the company’s third-quarter 2021 loss per share of 63 cents indicates a fall from the year-ago adjusted loss of 43 cents a share.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

Becton, Dickinson and Company (BDX - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank of 2 at present. The company is expected to release fourth-quarter fiscal 2021 results on Nov 4. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pfizer Inc. (PFE - Free Report) has an Earnings ESP of +2.2% and a Zacks Rank of 2 at present. The company is expected to release third-quarter 2021 results on Nov 2.

Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank of 2 at present. The company will announce third-quarter 2021 results on Oct 27.