## Teladoc Health (TDOC) Earnings Preview: What to Expect on October 30th
Investors are gearing up for Teladoc Health’s (TDOC) third-quarter 2024 earnings report, scheduled for Wednesday, October 30th. All eyes will be on whether the virtual healthcare provider can deliver positive news, exceeding analyst expectations and offering promising guidance for the coming quarter.
Analyst Expectations and Recent Performance:
Analysts are forecasting an earnings per share (EPS) of -$0.27 for the quarter. Investors are hoping for a positive surprise, particularly considering the company’s history of exceeding estimates in the past. For instance, Teladoc surpassed EPS estimates by $0.06 in the previous quarter. However, the share price dropped by 8.91% the following day, highlighting the influence of future projections on stock performance.
A Look Back at Teladoc’s Earnings History:
The table below summarizes Teladoc’s recent quarterly earnings performance and the subsequent impact on its share price:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | -0.34 | -0.28 | -9.0% |
| Q1 2024 | -0.46 | -0.49 | -2.0% |
| Q4 2023 | -0.21 | -0.17 | -24.0% |
| Q3 2023 | -0.37 | -0.35 | -4.0% |
As of October 28th, Teladoc’s shares were trading at $9.18. Over the past year, the stock has experienced a 46.1% decline. This negative performance is likely a source of concern for long-term shareholders going into the earnings release.
Analyst Sentiment and Peer Comparison:
To understand market expectations surrounding Teladoc, it’s crucial to analyze industry sentiment. The current consensus rating for Teladoc Health is Neutral, based on 15 analyst ratings. The average one-year price target is $10.47, suggesting a potential 14.05% upside.
Comparing Teladoc to its peers provides valuable insights into its relative performance and market positioning. Here’s a look at the consensus ratings and average one-year price targets for three other significant players in the industry: Certara, Schrodinger, and Phreesia.
*
Certara:
Neutral, with an average 1-year price target of $16.0 (74.29% upside)*
Schrodinger:
Neutral, with an average 1-year price target of $27.5 (199.56% upside)*
Phreesia:
Buy, with an average 1-year price target of $29.4 (220.26% upside)Key Financial Insights:
Here are some crucial financial metrics to consider when evaluating Teladoc’s performance:
*
Market Capitalization:
Below industry benchmarks, Teladoc’s market capitalization reflects a smaller scale relative to its peers. This could be attributed to factors such as growth expectations or operational capacity.*
Revenue Growth:
Teladoc’s revenue growth has been declining, with a -1.53% decrease over the past three months (as of June 30, 2024). This lags behind its industry peers, suggesting challenges in expanding its business.*
Net Margin:
Teladoc’s net margin is below industry benchmarks, indicating potential difficulties in achieving strong profitability. A net margin of -130.39% suggests the company needs to address challenges in effective cost control.*
Return on Equity (ROE):
Teladoc’s ROE is below industry averages, highlighting challenges in maximizing returns on equity capital. With an ROE of -44.19%, the company may face hurdles in achieving optimal financial performance.*
Return on Assets (ROA):
Teladoc’s ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. An ROA of -21.36% suggests the company may face hurdles in achieving optimal financial returns.*
Debt Management:
With a high debt-to-equity ratio of 1.06, Teladoc Health faces challenges in effectively managing its debt levels, indicating potential financial strain.Teladoc Health: A Virtual Healthcare Provider:
Teladoc Health is a virtual health provider offering on-demand healthcare services through mobile devices, the internet, video, and phone. Its telehealth platform also provides remote patient monitoring programs for chronic care management. The company operates in two segments: Teladoc Health Integrated Care and BetterHelp. The majority of its revenue comes from access fees on a subscription basis (per member, per month), with the balance coming from visit fees and equipment rental and sales to hospital systems.
Since its inception, Teladoc has partnered with employers, health plans, and health systems to offer network access to their members. It has also expanded its service portfolio and started to market directly to consumers.
Key Takeaways:
While Teladoc’s earnings report will offer a comprehensive picture of its financial performance, investors should keep the following in mind:
* Teladoc’s revenue growth and gross profit lag behind its peers.
* The company’s return on equity is relatively better compared to its peers.
* Teladoc’s financial metrics suggest potential challenges in profitability, efficient asset utilization, and debt management.
Investors should carefully consider these insights and Teladoc’s upcoming earnings report to make informed decisions about their investments in the virtual healthcare sector.
