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Teladoc (TDOC) Achieves Momentous 50M Milestone in Visits

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Teladoc Health, Inc. (TDOC - Free Report) recently announced that the company has exceeded 50 million patient visits. It generated the amount through its global network of clinicians. It also said that the huge milestone has been achieved in addition to millions of patient visits through its enterprise platform for healthcare professionals.

It hit one million patient visits in 2015. The COVID-19 pandemic triggered the number of visits. TDOC expects demand for unified whole-person care to keep rising in the coming days. It has witnessed a four-times increase in primary-care visits, year to date. During the same period, its nutrition wing encountered 30% growth in visits.

Of the 50 million visits, around one-third of them took place in the last year alone. This highlights the strong momentum TDOC is witnessing currently. People enrolled in chronic condition management solutions through two or greater programs are growing at a steady pace. The metric was at 13%, 24% and 34% in 2020, 2021 and 2022, respectively. Currently, the company estimates that one in every four Americans has access to its services via their employers or health plans.

Increased visits and members are supporting its results. In the third quarter, its earnings beat the Zacks Consensus Estimate by 23.7% on a 14% year-over-year rise in total visits and a 10% year-over-year increase in U.S. paid memberships. For full-year 2022, Teladoc projects total visits in the band of 18.4-18.6 million, indicating a rise from the 2021 level of 15.4 million. Revenues are anticipated within the $2,395-$2,410 million range, higher than the 2021 level of $2 billion.

However, it is to be seen how the company translates the growth in visits into financial success. The company’s bottom line is still in the red zone. Adjusted EBITDA for 2022 is now estimated to be in the range of $240-$250 million, down from the 2021 figure of $267.8 million. Net loss per share is expected to be within $61.10-$61.40 for the year. The same also indicates a deterioration from the 2021 loss figure of $2.73 per share.

Price Performance

Shares of Teladoc have decreased 0.6% in the past six months compared with the 15.1% decline of the industry.

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Zacks Rank & Stocks to Consider

Teladoc currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Elevance Health Inc. (ELV - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Inventiva S.A. (IVA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Elevance Health’s full-year earnings is currently pegged at $29.01 per share, indicating a year-over-year increase of 11.7%. ELV beat earnings estimates in all the past four quarters, with an average surprise of 4.1%.

The Zacks Consensus Estimate for AMN Healthcare’s current year bottom line indicates a 42.3% improvement from the prior-year reported number. The consensus estimate for AMN’s top line also indicates 29.7% year-over-year growth.

The Zacks Consensus Estimate for Inventiva’s 2022 bottom line indicates an 11.3% year-over-year improvement. IVA has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction.

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