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Livongo Health (LVGO) to Post Q1 Earnings: What's in Store?

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Livongo Health, Inc. is slated to release first-quarter 2020 results on May 6, after the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 133.3%.

Q1 Estimates

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $65.6 million. The consensus mark for the bottom line is pegged at a loss of 4 cents.

Factors to Note

Livongo Health first-quarter results are likely to reflect growth in core Livongo for Diabetes solution. Substantial contributions from hypertension, weight management and behavorial health offerings are likely to have acted as catalysts. In fact, per the preliminary announcement, the company anticipates revenues to range between $65.5 million and $66.5 million.

Further, continued strong demand in the company’s pipeline, rise in member enrollment and new client signings might have contributed to the first-quarter performance.

In fact, per the preliminary announcement, the company has witnessed more than 620 launches that exceeded expectations.

Livongo Health, Inc. Price and EPS Surprise

 

Livongo Health, Inc. Price and EPS Surprise

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

Additionally, the company is expected to display favorable gross margin on the back of higher incremental margins from members who continue to stay on its platform.

Livongo Health continues to witness higher adoption of both of its core diabetes offering and other offerings. Further, apart from expediting the adoption of Livongo for Diabetes in the self-insured market, the company has been successfully expanding into fully-insured and government markets. This might get reflected in the first-quarter performance.

Further, expansion of strategic agreements with key channel partners like CVS Health and Express Scripts are driving sales across multiple conditions.

Apart from integrating behavioral health into the Livongo platform, the company has partnered with telehealth providers in order to help its members in addressing medication changes, acute care or behavioral health needs with a medical professional through its platform.

However, the Livongo Health may have experienced a rise in operating expenses, which in turn can weigh on its performance in the to-be-reported quarter.

What Our Quantitative Model Suggests

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 chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Livongo Health 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: Livongo Health carries a Zacks Rank #3.

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Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 3.

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