Why Teladoc Stock Is Diving Today

Teladoc Health Inc TDOC shares are trading significantly lower Thursday after the company reported weak financial results.

Teladoc said first-quarter revenue increased 25% year-over-year to $565.4 million, which came in below the $568.8 million estimate. The company reported an earnings loss of $41.58 per share, which Teladoc said was primarily driven by a non-cash goodwill impairment charge of $6.6 billion ($41.11 per share).

"While we continue to see sustainable growth across our suite of products and services, we are revising our 2022 outlook to reflect dynamics we are currently experiencing in the direct-to-consumer (D2C) mental health and chronic condition markets," said Jason Gorevic, CEO of Teladoc.

Teladoc said it expects second-quarter revenue to be between $580 million and $600 million. The virtual healthcare company revised its full-year 2022 revenue expectations to a range of $2.4 billion to $2.5 billion versus the $2.58 billion estimate. Full-year adjusted EBITDA is expected to be between $240 million and $265 million.

Analyst Assessment: 

• Needham analyst Ryan MacDonald maintained Teladoc with a Buy rating and lowered the price target from $100 to $48.
• Credit Suisse analyst Jonathan Yong downgraded Teladoc from Outperform to a Neutral rating and lowered the price target from $114 to $35.
• Wells Fargo analyst Stan Berenshteyn downgraded Teladoc from Overweight to an Equal-Weight rating and announced a $40 price target.
• Citigroup analyst Daniel Grosslight downgraded Teladoc from Buy to a Neutral rating and lowered the price target from $115 to $43.

See Also: Morning Brief: Top Financial Stories Dominating on Thursday, April 28

TDOC 52-Week Range: $50.08 - $192.11

According to data from Benzinga Pro, the stock was down 44.4% at $31.15 at press time.

Photo: courtesy of Teladoc.