Teladoc falls on lowered guidance; analysts remain positive

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Teladoc falls on lowered guidance; analysts remain positive
Credit: © Reuters.

Teladoc (NYSE: TDOC ) lowered its guidance for the full year, sending its shares about 5% lower in pre-market Wednesday.

The company reported a loss per share of 35 cents on revenue of $660.2 million, which compares to the expected loss per share of 37 cents on sales of $664.1M.

For the full year, revenue is now expected to fall within the range of $2.60 billion to $2.63 billion, compared to the prior range of $2.60B to $2.68B, and the consensus of $2.63B.

The expected loss per share is $1.40 to $1.50, as opposed to the prior range of a loss per share from $1.25 to a loss per share of $1.60.

For the fourth quarter, revenue is projected to be in the range of $658M to $683M, while analysts were looking for $687.2M. The anticipated loss per share for the fourth quarter is 23 cents to 33 cents.

Analysts at DA Davidson reiterated a Buy rating and a $22 per share price target.

“The company is doing a good job of re-orienting towards greater efficiency, and is now undertaking a comprehensive operational review to further those efforts, but likely needs to show more stability in its revenue lines to drive investors to become more positive. We remain positive on the stock, given the margin profile, but await more detail (likely in February) on what actions management is taking,” they said.

Analysts at Oppenheimer added:

“We believe TDOC continues to take the necessary steps to drive margins and capture market-share in a more competitive environment. Due to its attractive valuation, we continue to favor TDOC for long-term investors.”

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