Teladoc Health Stock Drops After Reporting Wider Than Expected Q2 Net Loss; Analysts Lower Price Target


Teladoc Health Inc TDOC posted a wider than expected net loss in Q2 of $133.8 million, or $(0.86) a share, compared with $25.7 million or $(0.34) posted a year ago primarily due to expenses related to the large-scale acquisition of Livongo Health.

  • On average, analysts estimated a net loss of $(0.56) although cautioned that this "may not compare" to the actual result.
  • For its second quarter, Teladoc managed to grow its top line by 109% to $503 million, fueled by 138% growth in access fees, beating the consensus of $500.1 million.
  • During the quarter, the Company saw visits jump to 3.5 million. That's up 28% year-over-year from the June quarter of 2020 when the first wave of the pandemic hit the U.S. 
  • Paid memberships in the U.S. were 52 million, up 1% from 51.5 million in the second quarter of 2020.
  • "We have solid momentum heading into the second half as the market embraces the unified care experience that only Teladoc Health has the breadth and scale to achieve," CEO Jason Gorevic said in the earnings release.
  • FY2021 guidance: The Company forecasts sales of $2 billion to $2.025 billion. Its EPS loss outlook is $(3.60) to $(3.35).
  • It anticipates 13.5 million - 14 million total visits, with U.S. paid memberships ranging from 52 million to 54 million.
  • Analysts Reaction After Earnings: Keybanc maintains Teladoc with an Overweight rating but lowered the price target from $220 to $180.
  • SVB Leerink also reduced the target price from $266 to $218, with Outperform rating unchanged.
  • Price Action: TDOC shares are down 7.95% at $139.00 during the premarket session on the last check Wednesday.
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