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What's in the Cards for Doximity (DOCS) in Q2 Earnings?

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Doximity, Inc. (DOCS - Free Report) is set to report second-quarter fiscal 2022 results on Nov 9, after market close.

In the last-reported quarter, the company’s earnings of 11 cents topped the Zacks Consensus Estimate by 37.5%.

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

Factors at Play

In recent months, especially amid the pandemic-led restrictions, this prominent name in telehealth has been gaining from a higher customer retention rate on the greater acceptance of its digital health platform. Per the company’s August update, the net revenue retention rate grew to 167% over the trailing 12 months. Amid the unchanged COVID-19 scenario through August to September, this retention trend is likely to have contributed strongly to the company’s fiscal Q2 top line.

Doximity noted that with frontline physicians grappling with high case loads, the company’s e-signature and fax products registered record usage. In the last-reported quarter, on this growing demand, the company expanded its enterprise telehealth platform to an additional 24,000 U.S. physicians. Till the last update, the company served over 30% of all U.S. physicians with its paid telehealth offering. Following the emergence of the Delta variant during the months of fiscal Q2, the adoption of Doximity’s telehealth platform network is expected to have increased.

Doximity, Inc. Price and EPS Surprise

Doximity’s interactive platform allows top hospitals and pharmaceutical companies and the best brands in medicine to connect efficiently with the right physicians about new treatments, clinical trials and patient referrals. The company then measures its client's return on investment using third-party claims and prescription data. In recent months, the company has made a number of efforts to broaden its business. The company partnered with UpToDate, the leader in evidence-based clinical decision support, to make it easy for providers to send their patients educational materials and enable them to seamlessly look up clinical questions during a virtual visit. It has also added one-tap interpreter access to make it easy for physicians to add an interpreter or a family member if needed. Further, it added wall charts that doctors can show and annotate as they do in an in-person visit. The company created a physician named carter badge that appears at the bottom of a patient's screen, which includes the doctors institutional logo, title and credentials. All these developments are expected to get reflected in the company’s fiscal Q2 results.

Products like Doximity Dialer (a cloud-based telehealth platform launched in response to the pandemic) and Residency Navigator (which helps medical school students to decide which residency programs to apply to) have been in focus and we expect both to have generated significant revenues during the fiscal second quarter.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter fiscal 2022 revenues is pegged at $73.6 million.

The Zacks Consensus Estimate for the company’s second-quarter fiscal 2022 earnings per share remains at 10 cents.

What Our Model Suggests

Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of beating estimates. This is exactly the case as you can see:

Earnings ESP:The company has an Earnings ESP of +14.58%. 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.

Other Stocks Worth a Look

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

BellRing Brands, Inc.(BRBR - Free Report) has an Earnings ESP of +14.11% and a Zacks Rank of 2. The company will announce fourth-quarter fiscal 2021 results on Nov 18. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gemini Therapeutics (GMTX - Free Report) has an Earnings ESP of +17.61% and a Zacks Rank of 2. The company will report third-quarter 2021 results on Nov 11.

Black Diamond Therapeutics (BDTX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank of 3. The company is scheduled to release third-quarter 2021 results on Nov 9.

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