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What to Expect from Teladoc (TDOC) this Earnings Season?

Teladoc, Inc.TDOC , the first and largest telehealth provider in the nation, founded in 2002, is expected to release fourth-quarter 2015 financial results on Feb 8, 2016.

Last quarter, Teladoc incurred loss of 35 cents per share. Let's see how the results will shape up this quarter.

Factors at Play

The quarter is expected to have benefited from its services provided via phone or online video from any location to treat a range of patients' medical issues. 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 which makes it affordable.

During the quarter, the company completed 184,000 telehealth visits. This is expected to boost the top line. Teladoc is exposed to competition from existing players which might drain its bottom line. Higher operating expenses on continued expansion are also likely to hurt its results.

For the fourth quarter, the company expected revenues between $21 million and $22 million, EBITDA loss between $13 million and $14 million, total visits completed between 150,000 and 160,000, and net loss per share based on 38.4 million weighted average shares between 41 cents and 43 cents.

Earnings Whispers

Our proven model does not conclusively show that Teladoc is likely to beat the Zacks Consensus Estimate this 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 43 cents loss per share, while the Zacks Consensus Estimate stands narrower at 42 cents loss per share. The Earnings ESP is thus -2.38%.

Zacks Rank: Teladoc carries a Zacks Rank #2. Though a favorable Zacks Rank increases the predictive power of ESP, the company's negative ESP leaves us unsure of a likely beat.

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:

Assurant Inc. AIZ has an Earnings ESP of +0.65% and a Zacks Rank #3. The company is expected to release fourth-quarter earnings results on Feb 9, 2016.

CVS Health Corporation CVS has an Earnings ESP of +0.65% and a Zacks Rank #3. The company is expected to release fourth-quarter earnings results on Feb 9, 2016.

AMN Healthcare Services Inc. AHS has an Earnings ESP of +2.44% and a Zacks Rank #1. The company is expected to release fourth-quarter earnings results on Feb 18, 2016.

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ASSURANT INC (AIZ): Free Stock Analysis Report

CVS HEALTH CORP (CVS): Free Stock Analysis Report

AMN HLTHCR SVCS (AHS): Free Stock Analysis Report

TELADOC INC (TDOC): 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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