Teladoc Health, Inc. TDOC is scheduled to unveil its fourth-quarter 2023 results on Feb 20, after the closing bell.
Where Do the Predictions Stand?
The Zacks Consensus Estimate for fourth-quarter loss per share of 22 cents indicates a 4.4% improvement from the previous year’s loss of 23 cents. The prediction has remained steady over the past week. The consensus estimate for fourth-quarter revenues of $670.8 million signals a 5.2% increase from the year-ago reported figure.
Teladoc has surpassed the consensus estimate for earnings in all the last four quarters, with an average beat of 14.2%. This is reflected in the graph below:
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
Before delving into the detailed expectations for the upcoming quarter, it’s valuable to review TDOC’s performance in the last quarter.
Q3 Earnings Snapshot
In the preceding quarter, the virtual healthcare services provider registered an adjusted loss per share of 35 cents, narrower than the Zacks Consensus Estimate of a loss of 37 cents. The quarterly results were bolstered by enhanced access fees and substantial contributions from the Integrated Care and BetterHelp segments. The expanding membership base within the Integrated Care unit played a part in the quarterly performance. Nevertheless, the increase in expenses and a decline in visits partially offset the positive momentum.
Now, let’s assess the developments leading up to the fourth-quarter earnings announcement.
Q4 Factors to Consider
Teladoc Health’s fourth-quarter results are projected to benefit from higher Access Fees, visits, and growth in the Integrated Care and BetterHelp segments. It is anticipated that the number of BetterHelp paying users increased during the review quarter.
Both the Zacks Consensus Estimate and our estimate for fourth-quarter Access Fees revenues indicate a 6.5% increase from the prior-year quarter’s tally of $553.7 million. The Zacks Consensus Estimate for BetterHelp paying users for the fourth quarter suggests a more than 2% rise from a year ago.
The consensus estimates for total visits and U.S. Integrated Care members for the fourth quarter indicate year-over-year increases, positioning TDOC well for revenue growth. The projections for U.S. and international revenues also indicate positive momentum, with adjusted EBITDA from BetterHelp expected to show robust annual growth.
However, expenses (excluding goodwill impairments) are expected to have increased, primarily due to higher technology and development costs, advertising and marketing, and general and administrative costs. This escalation in expenses is likely to have an unfavorable impact on profits, making an earnings beat uncertain. Projections for other revenues indicate a slight decrease from the prior-year figure, adding to the potential headwinds.
Previously, during the third-quarter earnings release, management anticipated a specific range for total revenues and adjusted EBITDA for the fourth quarter, while outlining the expected membership base within the U.S. Integrated Care segment.
Earnings Anticipation
Our validated model does not definitively predict an earnings beat for Teladoc this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually augurs well for an earnings beat. However, this is not the case with Teladoc as indicated below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate currently stands at a loss of 22 cents per share, in line with the Zacks Consensus Estimate.
To explore potential investment opportunities before earnings announcements, you can utilize our Earnings ESP Filter.
Zacks Rank: Teladoc currently holds a Zacks Rank #2.
Prospective Stocks
While an earnings beat seems uncertain for Teladoc, there are other companies in the broader Medical sphere that are poised for a potential earnings beat, including:
Amedisys, Inc. AMED with an Earnings ESP of +2.02% and a Zacks Rank #2.
The Zacks Consensus Estimate for Amedisys’ earnings for the upcoming quarter has remained stable over the past week. AMED has exceeded earnings expectations in three of the last four quarters with an average surprise of 11.9%.
Globus Medical, Inc. GMED with an Earnings ESP of +5.68% and a Zacks Rank #3.
The Zacks Consensus Estimate for Globus Medical’s earnings for the to-be-reported quarter has witnessed upward revisions, as GMED surpassed earnings estimates in each of the past four quarters.
Codexis, Inc. CDXS with an Earnings ESP of +81.25% and a Zacks Rank #2.
The Zacks Consensus Estimate for Codexis’ bottom line for the upcoming quarter has been on the rise. CDXS appears well-positioned to surpass earnings estimates in the upcoming quarter, considering its historical performance.
