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What's in Offing for Teladoc Health's (TDOC) Earnings in Q1?

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·4 min read
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Teladoc Health, Inc. TDOC is scheduled to release first-quarter 2021 results on Apr 28, 2021, after the market closes.

Teladoc Health’s revenues in the to-be-reported quarter are likely to have gained from growth in utilization plus a robust and growing pipeline of multi-product sales including strong demand for its whole person chronic care programs.

Continued strength in the direct-to-consumer channel, higher demand for the company’s license platform in the health system market, growth in the international markets and member additions should aid results.

Revenues from subscription access fees are likely to have increased owing to contribution from Livongo and InTouch Health, which were acquired last year. The Zacks Consensus Estimate for subscription access fee revenues is pegged at $375 million, indicating 173.8% growth from the year-ago quarter’s reported figure.

The company is also expected to have witnessed a surge in visit volumes, boosted by greater patient satisfaction as consumers benefit from the company’s convenient, lower cost and high-quality service.

Further, visits from newly-registered individuals might have shot up, indicative of more number of patients adopting the company’s virtual healthcare services. The Zacks Consensus Estimate for visit revenues is pegged at $60 million, implying 37% growth from the year-ago period’s reported figure.

Teladoc Health is likely to have witnessed growth in the international market, driven by an increased penetration in the existing geographies and its expansion into new regions.

Total expenses are likely to have escalated, primarily due to general and administrative expenses, technology and development, cost of revenues, advertising and marketing, sales, acquisition and integration.

First-Quarter Guidance

The company anticipates revenues between $445 million and $455 million while adjusted EBITDA is estimated to be $45-$48 million.

Total visits are expected in the range of 2.9-3.1 million. The company projects the total U.S. paid membership in the band of 51-52 million members. Visit-fee-only access is estimated to be available to 22-23 million individuals.

Fourth-Quarter Results

Teladoc Health incurred a loss of 27 cents per share, wider than the Zacks Consensus Estimate of a loss of 25 cents. Also, the reported figure was a penny wider year over year. This was primarily due to flared-up expenses.

Earnings & Revenue Expectations

The Zacks Consensus Estimate for Teladoc Health’s first-quarter loss of 59 cents per share indicates deterioration from the loss of 40 cents reported in the year-ago quarter. The consensus estimate for sales of $452.09 million suggests a 150.05% rise from the year-ago period’s reported figure.

Eanings Surprise History

The company doesn’t have an impressive earnings surprise track. Its bottom line beat estimates in just one of the last four quarters (missing the mark on the other three occasions), the average positive surprise being -2.38%. This is depicted in the chart below.

Teladoc Health, Inc. Price and EPS Surprise

Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. Price and EPS Surprise

Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote

What Our Model Says

Our proven model does not predict an earnings beat for Teladoc Health this time around. The combination of a positive Earnings ESP Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: Teladoc Health has an Earnings ESP of 0.00%.

Zacks Rank: Teladoc Health currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Medical Sector Releases

Of the medical sector players that have reported first-quarter results so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Anthem Inc. ANTM and Tenet Healthcare Corporation THC beat their respectiveZacks Consensus Estimate.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

Anthem, Inc. (ANTM) : Free Stock Analysis Report

Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report

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