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Teladoc Health (TDOC) Gears Up for Q2 Earnings: What Lies Ahead?
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Teladoc Health, Inc. (TDOC - Free Report) is set to report second-quarter 2022 results on Jul 27, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 47 cents was narrower than the Zacks Consensus Estimate of a loss of 55 cents, primarily due to increased visits and memberships as well as higher utilization. Solid contribution from access and visit fees benefited the results. The positives were partially offset by a rise in expenses due to massive impairment charges.
The Zacks Consensus Estimate for second-quarter loss per share of 71 cents has witnessed no movement in the past week. The estimated figure suggests a 17.4% improvement from the prior-year loss of 86 cents per share. Teladoc beat the consensus estimate in three of the prior four quarters and missed once, with the average earnings surprise being 20.3%. This is depicted in the graph below:
The consensus estimate for second-quarter revenues of $586.9 million indicates a 16.6% increase from the year-ago reported figure.
Factors to Note
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, which is sold on a subscription basis. The Zacks Consensus Estimate for Subscription Access Fees Revenues is pegged at $512 million, indicating an increase from the year-ago period’s $434 million.
For second-quarter 2022, TDOC projects’ total visits were between 4.4-4.6 million. The consensus estimate for visits indicates a 27.7% year-over-year rise. This potential increase might have supported the bottom line.
The Zacks Consensus Estimate for total U.S. paid memberships is pegged at 55 million for the second quarter, signaling a rise from 52 million a year ago. Similarly, paid memberships in the international front are expected to have increased in the June quarter.
Nevertheless, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, sales, technology and development costs. Further, acquisition and integration-related costs as well as general and administrative expenses are likely to have increased in the second quarter, affecting profit levels and making an earnings beat uncertain. TDOC expects adjusted EBITDA within $39-$49 million for the second quarter, indicating a decline from the year-ago reported figure of $66.8 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 is currently pegged at a loss of 71 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 #1.
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:
ADC Therapeutics SA (ADCT - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2.
The Zacks Consensus Estimate for ADC Therapeutics’ top line for the to-be-reported quarter is pegged at $20.2 million, indicating a rise from $3.8 million a year ago. ADCT beat earnings estimates in each of the past four quarters with a surprise of 40.9%.
The Zacks Consensus Estimate for Alcon’s earnings per share for the to-be-reported quarter is pegged at 55 cents. ALC beat earnings estimates in each of the past four quarters with a surprise of 21.4%.
BioNTech SE (BNTX - Free Report) has an Earnings ESP of +1.99% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for BioNTech’s bottom line for the to-be-reported quarter is pegged at $6.63 per share. BNTX beat earnings estimates in each of the past four quarters with a surprise of 56.9%.
Image: Bigstock
Teladoc Health (TDOC) Gears Up for Q2 Earnings: What Lies Ahead?
Teladoc Health, Inc. (TDOC - Free Report) is set to report second-quarter 2022 results on Jul 27, after the closing bell.
In the last reported quarter, the virtual healthcare services provider’s adjusted loss per share of 47 cents was narrower than the Zacks Consensus Estimate of a loss of 55 cents, primarily due to increased visits and memberships as well as higher utilization. Solid contribution from access and visit fees benefited the results. The positives were partially offset by a rise in expenses due to massive impairment charges.
Let’s see how things have shaped up prior to the second-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter loss per share of 71 cents has witnessed no movement in the past week. The estimated figure suggests a 17.4% improvement from the prior-year loss of 86 cents per share. Teladoc beat the consensus estimate in three of the prior four quarters and missed once, with the average earnings surprise being 20.3%. This is depicted in the graph below:
Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
The consensus estimate for second-quarter revenues of $586.9 million indicates a 16.6% increase from the year-ago reported figure.
Factors to Note
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, which is sold on a subscription basis. The Zacks Consensus Estimate for Subscription Access Fees Revenues is pegged at $512 million, indicating an increase from the year-ago period’s $434 million.
For second-quarter 2022, TDOC projects’ total visits were between 4.4-4.6 million. The consensus estimate for visits indicates a 27.7% year-over-year rise. This potential increase might have supported the bottom line.
The Zacks Consensus Estimate for total U.S. paid memberships is pegged at 55 million for the second quarter, signaling a rise from 52 million a year ago. Similarly, paid memberships in the international front are expected to have increased in the June quarter.
Nevertheless, total expenses are expected to have escalated in the quarter, primarily due to higher advertising and marketing, sales, technology and development costs. Further, acquisition and integration-related costs as well as general and administrative expenses are likely to have increased in the second quarter, affecting profit levels and making an earnings beat uncertain. TDOC expects adjusted EBITDA within $39-$49 million for the second quarter, indicating a decline from the year-ago reported figure of $66.8 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 is currently pegged at a loss of 71 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 #1.
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:
ADC Therapeutics SA (ADCT - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2.
The Zacks Consensus Estimate for ADC Therapeutics’ top line for the to-be-reported quarter is pegged at $20.2 million, indicating a rise from $3.8 million a year ago. ADCT beat earnings estimates in each of the past four quarters with a surprise of 40.9%.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and is a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alcon’s earnings per share for the to-be-reported quarter is pegged at 55 cents. ALC beat earnings estimates in each of the past four quarters with a surprise of 21.4%.
BioNTech SE (BNTX - Free Report) has an Earnings ESP of +1.99% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for BioNTech’s bottom line for the to-be-reported quarter is pegged at $6.63 per share. BNTX beat earnings estimates in each of the past four quarters with a surprise of 56.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.