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Teladoc (TDOC) Eyes Q1 Earnings Beat on Rising US Paid Members
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Teladoc Health, Inc. (TDOC - Free Report) is set to continue its earnings beat streak for first-quarter 2022, whose results are set to be released on Apr 27, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 7 cents was narrower than the Zacks Consensus Estimate of a loss of 59 cents, primarily due to increased visits and memberships as well as lower expenses. Solid contribution from access and visit fees benefited the results.
The Zacks Consensus Estimate for first-quarter loss per share of 58 cents has witnessed one upward revision and no downward movement by firms in the past week. Nevertheless, this estimate is indicative of a massive deterioration from the year-ago reported earnings of 13 cents per share. The Zacks Consensus Estimate for revenues is pegged at $571.5 million, suggesting a jump of 26% from the year-ago reported figure.
Teladoc Health beat earnings estimates in three of the trailing four quarters and missed once, delivering an average surprise of 47.4%. This is depicted in the graph below.
Our proven model predicts an earnings beat for Teladoc Health this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for the company is currently +2.70%. This is because the Most Accurate Estimate is pegged at a loss of 56 cents per share, narrower than the Zacks Consensus Estimate of a loss of 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Visa currently holds a Zacks Rank #3.
Factors Driving Q1 Earnings
Revenues are likely to have gained from higher Access Fees, primarily led by the acquisitions of Livongo and InTouch Health, both of which generate a chunk of revenues from subscription access fees and growth in direct-to-consumer mental health, which is sold on a subscription basis. The Zacks Consensus Estimate for Subscription Access Fees Revenues is pegged at $488 million, indicating an increase from the year-ago period’s $388.2 million.
For first-quarter 2022, TDOC projects total visits between 4.3 million and 4.5 million. The consensus estimate for visits indicates a 41.4% year-over-year rise. This potential increase might have supported the bottom line.
The Zacks Consensus Estimate for total U.S. paid membership is pegged at 54 million for the first quarter, signaling a rise from 51.5 million a year ago, which might have positioned the company for an earnings beat. Similarly, paid membership in the international front is expected to have increased in the March quarter.
Nevertheless, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, sales, technology and development costs. Further, acquisition and integration-related costs as well as general and administrative expenses are likely to have increased in the quarter. This might have led to a year-over-year decrease in the bottom line. TDOC expects adjusted EBITDA within $51-$55 million for the first quarter, indicating a decline from the year-ago reported figure of $56.6 million.
Other Stocks That Warrant a Look
Here are some other companies from the Medical space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
Image: Shutterstock
Teladoc (TDOC) Eyes Q1 Earnings Beat on Rising US Paid Members
Teladoc Health, Inc. (TDOC - Free Report) is set to continue its earnings beat streak for first-quarter 2022, whose results are set to be released on Apr 27, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 7 cents was narrower than the Zacks Consensus Estimate of a loss of 59 cents, primarily due to increased visits and memberships as well as lower expenses. Solid contribution from access and visit fees benefited the results.
Let’s see how things have shaped up prior to the first-quarter 2022 earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter loss per share of 58 cents has witnessed one upward revision and no downward movement by firms in the past week. Nevertheless, this estimate is indicative of a massive deterioration from the year-ago reported earnings of 13 cents per share. The Zacks Consensus Estimate for revenues is pegged at $571.5 million, suggesting a jump of 26% from the year-ago reported figure.
Teladoc Health beat earnings estimates in three of the trailing four quarters and missed once, delivering an average surprise of 47.4%. This is depicted in the graph below.
Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Teladoc Health this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for the company is currently +2.70%. This is because the Most Accurate Estimate is pegged at a loss of 56 cents per share, narrower than the Zacks Consensus Estimate of a loss of 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Visa currently holds a Zacks Rank #3.
Factors Driving Q1 Earnings
Revenues are likely to have gained from higher Access Fees, primarily led by the acquisitions of Livongo and InTouch Health, both of which generate a chunk of revenues from subscription access fees and growth in direct-to-consumer mental health, which is sold on a subscription basis. The Zacks Consensus Estimate for Subscription Access Fees Revenues is pegged at $488 million, indicating an increase from the year-ago period’s $388.2 million.
For first-quarter 2022, TDOC projects total visits between 4.3 million and 4.5 million. The consensus estimate for visits indicates a 41.4% year-over-year rise. This potential increase might have supported the bottom line.
The Zacks Consensus Estimate for total U.S. paid membership is pegged at 54 million for the first quarter, signaling a rise from 51.5 million a year ago, which might have positioned the company for an earnings beat. Similarly, paid membership in the international front is expected to have increased in the March quarter.
Nevertheless, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, sales, technology and development costs. Further, acquisition and integration-related costs as well as general and administrative expenses are likely to have increased in the quarter. This might have led to a year-over-year decrease in the bottom line. TDOC expects adjusted EBITDA within $51-$55 million for the first quarter, indicating a decline from the year-ago reported figure of $56.6 million.
Other Stocks That Warrant a Look
Here are some other companies from the Medical space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
AngionBiomedica Corp. has an Earnings ESP of +15.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AngionBiomedica’s bottom line for the to-be-reported quarter suggests an improvement of 53.2% year over year.
Amylyx Pharmaceuticals, Inc. (AMLX - Free Report) has an Earnings ESP of +8.73% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Amylyx Pharmaceuticals’ earnings per share for the to-be-reported quarter has improved 29.9% in the past 30 days.
Aligos Therapeutics, Inc. (ALGS - Free Report) has an Earnings ESP of +4.55% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Aligos Therapeutics’ bottom line for the to-be-reported quarter suggests an improvement of 10.8% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.