(RTTNews) - Shares of virtual healthcare provider Teladoc Health, Inc. (TDOC) jumped 12.69% on Monday to hit its 52-week high of 98.98 before closing at $95.97. The stock is up nearly 70% year-to-date.
In the wake of growing demand for virtual care services, Teladoc, on January 12, announced its plan to acquire telehealth solutions provider, InTouch Health for $600 million. The deal, which is expected to close by the end of the second quarter, is estimated to add about $80 million to Teladoc's revenue.
According to a survey conducted by JP Morgan last year, 40% of hospitals are planning to increase their budgets for telemedicine solutions. As per the L.E.K. 2018 Hospital Study Survey, 61% of hospitals' revenue is expected to come from managed and value-based care models by 2021.
Teladoc had won a number of recognitions recently. In November last year, it had earned two accreditations through ClearHealth Quality Institute's Telemedicine Accreditation Program (TAP); for both Consumer-to-Provider services for acute care needs and Provider-to-Consumer services.
In October, the company had received the highest rating by consumers in the Direct-to-Consumer segment in J.D. Power's 2019 Telehealth Satisfaction Study, based on responses from 8,296 health consumers.
In September last year, when the company reported third-quarter results, revenue had risen to $137.97 million from $110.96 million in the corresponding quarter a year ago. Loss per share narrowed to $0.28 from $0.34.
Looking forward to fourth quarter, the company expects revenue to be in the range of $149 million to $153 million. The Street estimates $151.8 million. Net loss per share is expected to be between $0.37 and $0.31. Analysts see net loss of $0.33.
Fourth-quarter results of Teladoc is scheduled to be published on February 26.
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