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Can Growing Visits Aid Teladoc's (TDOC) Earnings in Q3?
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Teladoc Health, Inc. (TDOC - Free Report) is set to report its third-quarter 2023 results on Oct 24, after the closing bell.
Where Do the Estimates Stand?
The Zacks Consensus Estimate for third-quarter loss per share of 37 cents suggests a 17.8% improvement from the prior-year loss of 45 cents. The consensus mark remained stable over the past week. The consensus estimate for third-quarter revenues of $662.8 million indicates an 8.4% increase from the year-ago reported figure.
Teladoc beat the consensus estimate for earnings in all the prior four quarters, with the average being 18.8%. This is depicted in the graph below:
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at TDOC’s previous-quarter performance first.
Q2 Earnings Rewind
In the last reported quarter, this virtual healthcare services provider’s adjusted loss per share of 40 cents was narrower than the Zacks Consensus Estimate of a loss of 44 cents. The quarterly results gained from strong growth in access fees and other revenues, coupled with improving segmental profitability of Integrated Care. However, rising advertising and marketing, technology and development expenses partially offset the positives.
Now, let’s see how things have shaped up before the third-quarter earnings announcement.
Q3 Factors to Note
Teladoc’s third-quarter results are likely to have gained from higher Access Fees, visits and segmental growth in both Integrated Care and BetterHelp segments. We expect BetterHelp paying users to have increased significantly in the quarter under review.
Both the Zacks Consensus Estimate and our estimate for third-quarter Access Fees revenues indicate a 6.6% increase from the prior-year quarter’s tally of $540.1 million. Similarly, both estimates for other revenues are pegged at $80.5 million, suggesting a 12.8% increase from the year-ago figure.
The Zacks Consensus Estimate for BetterHelp paying users for the third quarter suggests a more than 12% rise from a year ago. For third-quarter 2023, our model predicts a 4.8% year-over-year increase in total visits. We expect U.S. Integrated Care members for the third quarter to have increased 5.1% from the year-ago period.
The factors stated above are likely to have poised TDOC well for revenue growth. We expect U.S. revenues for the third quarter to rise more than 6% year over year, while international revenues are expected to jump more than 13%.
However, expenses (excluding goodwill impairments) are expected to have escalated in the quarter, primarily due to higher technology and development costs, COGS, and general and administrative costs. This is expected to have affected profits, making an earnings beat uncertain.
Previously, at the second-quarter earnings release, management stated that it expects total revenues of $650-$675 million and an adjusted EBITDA of $72-$82 million for third-quarter 2023. U.S. Integrated Care Members were forecasted to stay at around 86 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Teladoc this time around. 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. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate currently stands at a loss of 37 cents per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teladoc currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Teladoc, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Apellis’ earnings per share for the to-be-reported quarter indicates a 49.1% year-over-year improvement. APLS beat earnings estimates twice in the past four quarters and missed on two occasions, the average surprise being 1.4%.
AstraZeneca PLC (AZN - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #3.
The Zacks Consensus Estimate for AstraZeneca’s bottom line for the to-be-reported quarter is pegged at 82 cents per share, which improved 3.8% in the past 30 days. AZN beat earnings estimates in all the past four quarters, the average surprise being 8.4%.
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +1.31% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Jazz Pharmaceuticals’ bottom line for the to-be-reported quarter has improved 0.8% in the past 60 days. The consensus mark for JAZZ’s revenues is pegged at $970.5 million, signaling 3.2% year-over-year growth.
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Can Growing Visits Aid Teladoc's (TDOC) Earnings in Q3?
Teladoc Health, Inc. (TDOC - Free Report) is set to report its third-quarter 2023 results on Oct 24, after the closing bell.
Where Do the Estimates Stand?
The Zacks Consensus Estimate for third-quarter loss per share of 37 cents suggests a 17.8% improvement from the prior-year loss of 45 cents. The consensus mark remained stable over the past week. The consensus estimate for third-quarter revenues of $662.8 million indicates an 8.4% increase from the year-ago reported figure.
Teladoc beat the consensus estimate for earnings in all the prior four quarters, with the average being 18.8%. This is depicted in the graph below:
Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at TDOC’s previous-quarter performance first.
Q2 Earnings Rewind
In the last reported quarter, this virtual healthcare services provider’s adjusted loss per share of 40 cents was narrower than the Zacks Consensus Estimate of a loss of 44 cents. The quarterly results gained from strong growth in access fees and other revenues, coupled with improving segmental profitability of Integrated Care. However, rising advertising and marketing, technology and development expenses partially offset the positives.
Now, let’s see how things have shaped up before the third-quarter earnings announcement.
Q3 Factors to Note
Teladoc’s third-quarter results are likely to have gained from higher Access Fees, visits and segmental growth in both Integrated Care and BetterHelp segments. We expect BetterHelp paying users to have increased significantly in the quarter under review.
Both the Zacks Consensus Estimate and our estimate for third-quarter Access Fees revenues indicate a 6.6% increase from the prior-year quarter’s tally of $540.1 million. Similarly, both estimates for other revenues are pegged at $80.5 million, suggesting a 12.8% increase from the year-ago figure.
The Zacks Consensus Estimate for BetterHelp paying users for the third quarter suggests a more than 12% rise from a year ago. For third-quarter 2023, our model predicts a 4.8% year-over-year increase in total visits. We expect U.S. Integrated Care members for the third quarter to have increased 5.1% from the year-ago period.
The factors stated above are likely to have poised TDOC well for revenue growth. We expect U.S. revenues for the third quarter to rise more than 6% year over year, while international revenues are expected to jump more than 13%.
However, expenses (excluding goodwill impairments) are expected to have escalated in the quarter, primarily due to higher technology and development costs, COGS, and general and administrative costs. This is expected to have affected profits, making an earnings beat uncertain.
Previously, at the second-quarter earnings release, management stated that it expects total revenues of $650-$675 million and an adjusted EBITDA of $72-$82 million for third-quarter 2023. U.S. Integrated Care Members were forecasted to stay at around 86 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Teladoc this time around. 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. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate currently stands at a loss of 37 cents per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teladoc currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Teladoc, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Apellis Pharmaceuticals, Inc. (APLS - Free Report) has an Earnings ESP of +13.77% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apellis’ earnings per share for the to-be-reported quarter indicates a 49.1% year-over-year improvement. APLS beat earnings estimates twice in the past four quarters and missed on two occasions, the average surprise being 1.4%.
AstraZeneca PLC (AZN - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #3.
The Zacks Consensus Estimate for AstraZeneca’s bottom line for the to-be-reported quarter is pegged at 82 cents per share, which improved 3.8% in the past 30 days. AZN beat earnings estimates in all the past four quarters, the average surprise being 8.4%.
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +1.31% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Jazz Pharmaceuticals’ bottom line for the to-be-reported quarter has improved 0.8% in the past 60 days. The consensus mark for JAZZ’s revenues is pegged at $970.5 million, signaling 3.2% year-over-year growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.