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Can Teladoc's (TDOC) Q4 Earnings Beat on Growing Visits?
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Teladoc Health, Inc. (TDOC - Free Report) is set to sustain its earnings beat streak for fourth-quarter 2022, the results of which are scheduled to be released on Feb 22, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 45 cents was narrower than the Zacks Consensus Estimate of a loss of 59 cents, primarily due to increased visits and memberships, as well as higher utilization. Solid contributions from access and visit fees benefited the results. The positives were partially offset by a rise in expenses.
The Zacks Consensus Estimate of a loss of 27 cents for fourth-quarter earnings per share has witnessed one upward revision and no downward movement in the past week. The consensus mark, however, is indicative of a 285.7% deterioration from the year-ago quarter’s reported figure while our estimate suggests a 121.3% deterioration.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $633.7 million, suggesting a jump of 14.3% from the year-ago quarter’s reported figure. We expect fourth-quarter revenues to witness a 13.2% increase from the year-ago quarter’s reading.
Teladoc Health beat on earnings in all the trailing four quarters, the average being 41.1%. 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, which is precisely the case here.
Earnings ESP: TeladocHealth has an Earnings ESP of +1.33% as the Most Accurate Estimate is currently pegged narrower than the Zacks Consensus Estimate of a loss of 27 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teladoc Health currently has a Zacks Rank #3.
Factors Driving Q4 Results
Teladoc Health’s fourth-quarter revenues are likely to have gained from higher Access Fees. Multiple acquisitions are expected to have generated higher subscription access fees and growth in direct-to-consumer mental health, sold on a subscription basis.
The Zacks Consensus Estimate for subscription Access Fees Revenues is pegged at $554 million, indicating an increase from the year-ago period’s $469.9 million. Our estimate suggests Access Fees Revenues of $550.7 million for the quarter under review, indicating a 17.2% increase from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Visit Fee revenues is pegged at $71 million for the fourth quarter, implying a 3% rise from the year-ago period’s respective reported figures while our estimate suggests 2.2% year-over-year growth.
For the fourth quarter of 2022, both the Zacks Consensus Estimate and our estimate for the total visits are pegged at 4.8 million, indicating a rise from the year-ago quarter’s 4.4 million. This potential increase is likely to have poised TDOC well for an earnings beat.
The Zacks Consensus Estimate for total U.S. paid memberships is pegged at 57 million for the fourth quarter, suggesting a rise from 53.6 million a year ago while our estimate stands at 57.1 million.
However, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, technology and development costs. Further, the cost of goods sold is likely to have increased in the fourth quarter, causing a deterioration in profit levels from the year-earlier quarter’s actuals. Our estimate suggests that total expenses for the fourth quarter are likely to have risen 9.2% from the prior-year quarter’s reported figure to $595.7 million.
Previously, at the third-quarter earnings release, management stated that it expects total revenues of $625-$640 million and an adjusted EBITDA of $88-$98 million for fourth-quarter 2022. Total visits were projected between 4.7 million and 4.9 million. Net loss per share was expected within 10-40 cents. The total U.S. paid membership was expected within 57-58 million.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader medical space, as our model shows that these too have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. VIR beat earnings estimates in three of the past four quarters and missed once.
SI-BONE, Inc. (SIBN - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #3.
The Zacks Consensus Estimate for SI-BONE’s bottom line for the to-be-reported quarter indicates a 2.3% improvement from a year ago. The consensus mark for revenues suggests a 26% year-over-year increase.
Merus N.V. (MRUS - Free Report) has an Earnings ESP of +28.91% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Merus’ bottom line for the to-be-reported quarter remained stable over the past week. MRUS beat earnings estimates in all the past four quarters, with an average of 42%.
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Can Teladoc's (TDOC) Q4 Earnings Beat on Growing Visits?
Teladoc Health, Inc. (TDOC - Free Report) is set to sustain its earnings beat streak for fourth-quarter 2022, the results of which are scheduled to be released on Feb 22, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 45 cents was narrower than the Zacks Consensus Estimate of a loss of 59 cents, primarily due to increased visits and memberships, as well as higher utilization. Solid contributions from access and visit fees benefited the results. The positives were partially offset by a rise in expenses.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
The Trend in Estimate Revision
The Zacks Consensus Estimate of a loss of 27 cents for fourth-quarter earnings per share has witnessed one upward revision and no downward movement in the past week. The consensus mark, however, is indicative of a 285.7% deterioration from the year-ago quarter’s reported figure while our estimate suggests a 121.3% deterioration.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $633.7 million, suggesting a jump of 14.3% from the year-ago quarter’s reported figure. We expect fourth-quarter revenues to witness a 13.2% increase from the year-ago quarter’s reading.
Teladoc Health beat on earnings in all the trailing four quarters, the average being 41.1%. 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, which is precisely the case here.
Earnings ESP: TeladocHealth has an Earnings ESP of +1.33% as the Most Accurate Estimate is currently pegged narrower than the Zacks Consensus Estimate of a loss of 27 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teladoc Health currently has a Zacks Rank #3.
Factors Driving Q4 Results
Teladoc Health’s fourth-quarter revenues are likely to have gained from higher Access Fees. Multiple acquisitions are expected to have generated higher subscription access fees and growth in direct-to-consumer mental health, sold on a subscription basis.
The Zacks Consensus Estimate for subscription Access Fees Revenues is pegged at $554 million, indicating an increase from the year-ago period’s $469.9 million. Our estimate suggests Access Fees Revenues of $550.7 million for the quarter under review, indicating a 17.2% increase from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Visit Fee revenues is pegged at $71 million for the fourth quarter, implying a 3% rise from the year-ago period’s respective reported figures while our estimate suggests 2.2% year-over-year growth.
For the fourth quarter of 2022, both the Zacks Consensus Estimate and our estimate for the total visits are pegged at 4.8 million, indicating a rise from the year-ago quarter’s 4.4 million. This potential increase is likely to have poised TDOC well for an earnings beat.
The Zacks Consensus Estimate for total U.S. paid memberships is pegged at 57 million for the fourth quarter, suggesting a rise from 53.6 million a year ago while our estimate stands at 57.1 million.
However, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, technology and development costs. Further, the cost of goods sold is likely to have increased in the fourth quarter, causing a deterioration in profit levels from the year-earlier quarter’s actuals. Our estimate suggests that total expenses for the fourth quarter are likely to have risen 9.2% from the prior-year quarter’s reported figure to $595.7 million.
Previously, at the third-quarter earnings release, management stated that it expects total revenues of $625-$640 million and an adjusted EBITDA of $88-$98 million for fourth-quarter 2022. Total visits were projected between 4.7 million and 4.9 million. Net loss per share was expected within 10-40 cents. The total U.S. paid membership was expected within 57-58 million.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader medical space, as our model shows that these too have the right combination of elements to beat on earnings this time around:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +338.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. VIR beat earnings estimates in three of the past four quarters and missed once.
SI-BONE, Inc. (SIBN - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #3.
The Zacks Consensus Estimate for SI-BONE’s bottom line for the to-be-reported quarter indicates a 2.3% improvement from a year ago. The consensus mark for revenues suggests a 26% year-over-year increase.
Merus N.V. (MRUS - Free Report) has an Earnings ESP of +28.91% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Merus’ bottom line for the to-be-reported quarter remained stable over the past week. MRUS beat earnings estimates in all the past four quarters, with an average of 42%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.