Teladoc Health, Inc. (NYSE:TDOC) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Teladoc Health, Inc. (NYSE:TDOC) had a good week, as its shares rose 7.5% to close at US$9.21 following the release of its quarterly results. It looks like the results were pretty good overall. While revenues of US$641m were in line with analyst predictions, statutory losses were much smaller than expected, with Teladoc Health losing US$0.19 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Teladoc Health after the latest results.

See our latest analysis for Teladoc Health

Following last week's earnings report, Teladoc Health's 24 analysts are forecasting 2025 revenues to be US$2.54b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 84% to US$0.93. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.55b and losses of US$0.91 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a modest increase to its losses per share forecasts.

The consensus price target held steady at US$10.40, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Teladoc Health, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$8.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Teladoc Health's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.5% annualised decline to the end of 2025. That is a notable change from historical growth of 27% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. It's pretty clear that Teladoc Health's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for 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. The consensus price target held steady at US$10.40, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Teladoc Health analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Teladoc Health .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.