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Stock Alert: Teladoc Shares Reflect Growing Demand For Virtual Care Services

(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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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