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Will Advance Medical Buyout Aid Teladoc (TDOC) Q3 Earnings?

Teladoc Health, Inc.TDOC is scheduled to report third-quarter 2018 results on Nov 1, after the market closes .

Last reported quarter, the company's earnings per share topped the Zacks Consensus Estimate by 2.6%. However, the company delivered positive surprises in just two of the trailing four quarters with the average miss being 5.8%.

Let's see, how things are shaping up prior to this announcement.

Factors at Play

Teladoc Health is expected to make a strong top-line contribution in the third quarter from its acquisition of Advance Medical, a virtual health company. The transaction closed in June, was fully operational during the period to be reported. Notably, the second quarter that saw a single-month contribution from Advanced Medical, registered significant growth of 112% fueled by this buyout.

Teladoc, Inc. Price and EPS Surprise

Teladoc, Inc. Price and EPS Surprise | Teladoc, Inc. Quote

This apart, from the third quarter onward, the company's landmark acquisition of Best Doctors (closed in July 2017), an expert medical consultation company, is going to roll into the company's organic growth profile. With Best Doctors' number of strategic developments, this is going to significantly boost Teladoc's organic revenues for the quarter to be reported.

The company recently noted that it is expecting strong demand from its U.S. clients for virtual care. Keeping in line with this, in the third quarter, the company launched Teladoc Global Care that enables multinational organizations to provide expats and travelers with a single solution for convenient and easy-to-navigate access to quality care, regardless of geographic location. This should also lend a substantial input to the company's top line in the yet-to-be-reported quarter.

Teladoc is also making an excellent progress with its international sales team. Particularly in Europe, the company is focused on orienting its respective clients to a full scope of services, available from the combined organization. According to the company, the reception has been extremely strong so far.

Here's What Our Quantitative Model Predicts

Per the proven Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP . You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Teladoc Health has a Zacks Rank #3, which increases the predictive power of ESP. It also has an Earnings ESP of +0.17%. The combination suggests that the company is likely to beat on earnings this reporting cycle.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering as these too have the right combination of elements to beat on earnings in the upcoming quarterly results.

Baxter International Inc BAX has an Earnings ESP of +0.90% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .

Masimo Corporation MASI has an Earnings ESP of +0.98% and a Zacks Rank #2.

Luminex Corporation LMNX has an Earnings ESP of +54.76% and a Zacks Rank of 3.

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Luminex Corporation (LMNX): Free Stock Analysis Report

Masimo Corporation (MASI): Free Stock Analysis Report

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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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