Teladoc Facing Analyst Price Target Cuts After Wider Than Expected Q1 Loss

 

• Teladoc Health (NYSE: TDOC) reported a wider than expected Q1 loss of $1.31 per share which missed the analyst consensus estimate of $0.62, versus a loss of $0.40 a year ago.
• That steeper net loss stemmed in part from a $68 million increase in stock-based compensation expense, as well as amortization of acquired intangibles related to its Livongo and Intouch Health acquisitions that pulled its bottom line down by $37 million compared to the prior-year period.
• The biggest hit was due to an $87 million non-cash income tax charge that primarily reflected a valuation allowance on the stock compensation benefits linked to its purchase of Livongo.
• The company reported quarterly sales of $453.68 million, marginally above the analyst consensus of $451.92 million, up 151% Y/Y. The total visits increased 56% Y/Y to 3.2 million.
• The company’s revenue increased by 18% sequentially, with part of this growth acquisition of Livongo, closed in October 2020.
• However, Teladoc achieved significant improvement on adjusted EBITDA of $56.6 million in the first quarter, up from $10.7 million in the prior-year period.
• Teladoc’s U.S. paid membership decreased in the first quarter to 51.5 million from 51.8 million in the previous quarter. However, its total number of visits rose nearly 8% sequentially to almost 3.2 million. 
• The company’s utilization rate also increased to 19.6% from the fourth quarter’s 17.7%.
• Guidance: Teladoc expects Q3 revenue between $495 million and $505 million, with full-year revenue of $1.97 billion to $2.02 billion, in line with the analyst consensus.
• It anticipates total U.S. paid membership in Q2 of between 52 million and 53 million, not much higher than its Q1 level.
• For the full year, it sees the U.S. paid membership climb no higher than 54 million. 
• The company doesn’t expect total visits to rise much in Q2, with a projection of 3.2 million and 3.4 million.
• After the Q1 earnings, several analysts lowered their price targets for Teladoc:
• Evercore ISI lowered the price target to $185 from $195 and kept an in-line rating.
• Cowen’s Charles Rhyee cut his price target to $240 from $268, maintaining his outperform rating.
• Oppenheimer lowered the price target to $250 from $270.
• KeyBanc analyst Donald Hooker lowered the price target to $220 from $270, keeping an Overweight rating on the stock.
• Craig-Hallum cut the firm’s price target to $202 from $220 and kept a Hold rating.
• Canaccord slashed the price target to $295 from $330, with the Buy rating unchanged.
• BTIG analyst David Larsen lowered the firm’s price target to $300 from $330 but kept a Buy rating.

https://www.benzinga.com/news/earnings/21/04/20866944/teladoc-stock-plummets-facing-analyst-price-target-cuts-after-wider-than-expected-q1-loss