Teladoc Health, Inc. (NYSE:TDOC) Released Earnings Last Week And Analysts Lifted Their Price Target To US$8.15

A week ago, Teladoc Health, Inc. (NYSE:TDOC) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results overall were solid, with revenues arriving 2.5% better than analyst forecasts at US$605m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.15 per share, were 2.5% smaller than the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the consensus from Teladoc Health's 21 analysts is for revenues of US$2.36b in 2027, which would reflect a small 4.2% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 25% to US$0.64. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.40b and losses of US$0.66 per share in 2027. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

See our latest analysis for Teladoc Health

The average price target rose 9.1% to US$8.15, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Teladoc Health analyst has a price target of US$11.50 per share, while the most pessimistic values it at US$6.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2027. This indicates a significant reduction from annual growth of 3.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Teladoc Health's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Teladoc Health's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Teladoc Health analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Teladoc Health that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.