Amwell Reports Mixed Q2 Results; Shares Fall 2.7%

Telehealth platform Amwell (AMWL) has reported mixed results for its second quarter ended June 30, 2021. Following the earnings, shares of the company declined 2.7% to close at $10 in extended trade on Wednesday.

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Quarterly revenues stood at $60.2 million, down 12.2% from the same quarter last year, and failed to beat the Street’s estimates of $61.7 million. Subscription revenues of $26.8 million and Visit revenues of $27.5 million made up approximately 90.2% of the company’s quarterly revenues.

The company reported a quarterly loss per share of $0.15, narrower than the loss of $1.99 per share in the year-ago quarter. Analysts had expected a loss per share of $0.19.

For 2021, the company expects revenues to be between $252 and $262 million, lower than its previous range of $260 to $270 million due to concerns emanating from the spread of the Delta variant.

The CEO of Amwell, Dr. Ido Schoenberg, said, “In Q2, we were pleased to show significant progress in shifting the mix of our revenues more towards enabling technology versus visits. We expect this shift to continue in 2022 and beyond, and after our Converge roll-out to drive better margins and profitability. We are therefore confirming our Subscription, Carepoints and related technology revenue outlook, given the strong performance in the first half.” (See Amwell stock chart on TipRanks)

Last month, Morgan Stanley analyst Ricky Goldwasser reiterated a Buy rating on the stock. The analyst, however, lowered the price target on the stock from $32 to $18, which implies 75.1% upside potential from current levels.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 3 Buys and 5 Holds. The average Amwell price target of $16.58 implies that the stock has upside potential of 61.3% from current levels. Shares have declined about 55.4% over the past year.