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Teladoc (TDOC): What's in Store this Earnings Season?

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Teladoc, Inc.TDOC , the first and largest telehealth provider in the nation, is scheduled to release third-quarter 2015 financial results on Nov 2.

Last quarter (the first earnings release after the company went public), the company posted a positive surprise of 16.4%. Let's see how the company's earnings will shape up for this announcement.

Factors at Play

The company's results are expected to see growth from its services provided via phone or online video from any location to treat a range of patients' medical issue. Moreover, Teladoc costs far less than urgent care or emergency room visits for non-emergency medical care. It also qualifies as an expense for HSA, FSA and HRA accounts that increases its affordability.

During the quarter, the company completed one million telehealth visits. This is expected to boost the top line.

During the second quarter, the company had filed for its initial public offering (IPO). The IPO itself confirms the company's history of profitability and a bright future that should draw investors.

Since Teladoc is newly formed, it is exposed to competition from existing players like GlobalCare, Inc. and Active American Well, which might drain its bottom line.

The company's results are also expected to be hurt by higher operating expenses, as it continues to spend on expansion.

Earnings Whispers

Our proven model does not conclusively show that Teladoc is likely to beat the Zacks Consensus Estimate in the third quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.

Zacks ESP: Teladoc's Most Accurate estimate is pegged at a loss of 35 cents per share, which is in line with the Zacks Consensus Estimate. The Earnings ESP is thus 0.00%.

Zacks Rank: Teladoc has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company's ESP of 0.00% leaves our prediction inconclusive.

Stocks to Consider

Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:

AmSurg Corp. AMSG has an Earnings ESP of +8.79% and a Zacks Rank #1. The company will release earnings results on Nov 3.

Federated National Holding Company FNHC has an Earnings ESP of +68% and a Zacks Rank #1. The company will release earnings results on Nov 4.

CoLucid Pharmaceuticals, Inc. CLCD has an Earnings ESP of +11.27% and a Zacks Rank #1. The company will release earnings results on Nov 11.

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AMSURG CORP (AMSG): Free Stock Analysis Report

TELADOC INC (TDOC): Free Stock Analysis Report

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FEDERATED NATL (FNHC): Free Stock Analysis Report

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


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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