The stock of Teladoc Health (TDOC) is down 10% after the telemedicine company reported a wider loss than Wall Street had expected and issued weak forward guidance.
The New York-based company announced a loss per share of -$0.28, which was worse than the loss of -$0.26 that was the consensus expectation among analysts. Revenue during the fourth quarter of 2024 came in at $640.5 million, which was slightly ahead of the $639.6 million that was expected on Wall Street.
Sales were down 3% from the same period a year earlier.
After thriving in the early days of the Covid-19 pandemic, Teladoc Health has struggled in recent years with stiff competition in the area of remote health, as well as ongoing problems at its mental health division BetterHelp and high operating costs.
Planning for the Future
“As we look forward in 2025, execution will continue to be a top priority as we advance efforts to unlock growth opportunities and position the company for long term success,” said Teladoc CEO Chuck Divita in the company’s earning statement.
As for guidance, Teladoc Health said that it expects revenue in the current quarter of $608 million to $629 million. That missed analysts’ target of $632.9 million. The company said its earnings for Q1 of this year will be between $47 million and $59 million. Earlier this year, Teladoc Health said that it will acquire preventative care company Catapult Health in an all-cash deal worth $65 million.
TDOC stock has declined 28% in the last 12 months.
Is TDOC Stock a Buy?
The stock of Teladoc Health has a consensus Moderate Buy rating among 12 Wall Street analysts. That rating is based on five Buy and seven Hold recommendations assigned in the last three months. The average TDOC price target of $12.28 implies 11.74% upside from current levels. These ratings are likely to change after the company’s financial results.
