Teladoc Crashes On Growing Losses — And Expects Deficits To Continue

Teladoc Health (TDOC) posted wider-than-expected losses Tuesday — a trend expected to continue this year — leading TDOC stock to crash.




X



During the second quarter, Teladoc lost 86 cents per share. Analysts polled by FactSet only expected the telemedicine giant to report a 53-cent per-share loss. Losses more than doubled year over year from 34 cents in the second quarter of 2020.

While the company continues to see losses in future quarters, it was bullish on its second-quarter performance. Sales grew 109% year over year to $503.1 million. That was ahead of TDOC stock analysts’ projection for $501 million.

“We have solid momentum heading into the second half as the market embraces the unified care experience that only Teladoc Health has the breadth and scale to achieve,” Chief Executive Jason Gorevic said in a written statement.

In after-hours trading on the stock market today, TDOC stock tumbled 7.8% near 139.30.

TDOC Stock Crashes On Wide Losses

Teladoc offers a platform for telemedicine, including virtual doctors’ office visits. The technology hit its stride in the middle of the Covid pandemic as patients stayed home to avoid infection. During the most recent quarter, access fees revenue surged 138% to $434 million. U.S. revenue led the way, growing 161%.

Meanwhile, visit fee revenue rose 1% in the U.S., helping outplay a 63% international dive. Overall, visit fee revenue climbed 1% to $59.3 million.

For the year, Teladoc expects $2 billion to $2.03 billion in sales, above TDOC stock projections for $2.01 billion. But guidance for losses of $3.35-$3.60 per share were broader than forecasts for a per-share loss of $2.84.

TDOC stock gained attention at the height of the pandemic, more than doubling over the course of 2020. But shares are now hitting a ceiling at their 50-day line, according to MarketSmith.com.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Boston Scientific Breaks Out After Sidestepping ‘Fears Of A Summer Slowdown’

Is Moderna Stock A Buy After Inking A Slew Of New Covid Vaccine Supply Deals?

Find Today’s Best Growth Stocks To Watch With IBD 50

IBD’s Leaderboard Is Turning 10! Help Us Celebrate

Learn How To Time The Market With IBD’s ETF Market Strategy

Related post