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Doximity (DOCS) to Report Q3 Earnings: What's in the Cards?

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Doximity, Inc. (DOCS - Free Report) is scheduled to report third-quarter fiscal 2022 results on Feb 8, after the opening bell.

The company delivered an earnings surprise of 90% in the last reported quarter.

Q3 Estimates

The Zacks Consensus Estimate for Doximity’s fiscal third-quarter earnings per share is pegged at 13 cents, while the same for revenues stands at $86.3million.

Factors to Note

Per the fiscal second-quarter 2022 earnings release, the shift to digital among Doximity’s clients led to a strong performance, and this is likely to have continued in the fiscal third quarter as well.

Per management, the company’s existing clients generated a record 173% net revenue retention rate (for the trailing 12 months) in the fiscal second quarter of 2022, while its telehealth platform witnessed a record of above 330,000 active providers. This momentum is likely to have sustained in the to-be-reported quarter.

Per the company’s guidance, revenues are expected to be $85.8-$86.8 million in the fiscal third quarter. The aforementioned factors are likely to have contributed to the company’s top line.

Doximity, Inc. Price and EPS Surprise

Doximity, Inc. Price and EPS Surprise

Doximity, Inc. price-eps-surprise | Doximity, Inc. Quote

In November 2021, the company partnered with industry leader Press Ganey to instantly provide real-time patient experience surveys to patients after any virtual visit via text. This collaboration has been aiding hospitals in saving money by lowering the need for more expensive phone- or mail-based patient surveys.

In the same month, Doximity made certain enhancements to its Enterprise Telehealth platform that included an “Add Family” function, thereby enabling both patients and doctors to dial out and add caregivers to a live visit. Also, the company now provides a TV news anchor-like banner or name badge that shows the clinician’s name, credentials, specialties, and hospital logo within the video visit interface.

These positive developments may get reflected in the fiscal third-quarter results.

What the Zacks Model Unveils

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

Earnings ESP: Doximity has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank of 2.

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.

Laboratory Corporation of America Holdings (LH - Free Report) , also popularly known as LabCorp, has an Earnings ESP of +9.21% and a Zacks Rank of 3.

LabCorp’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 6.8% compares favorably with the industry’s 4.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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