The Teladoc Health, Inc. (NYSE:TDOC) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

There's been a notable change in appetite for Teladoc Health, Inc. (NYSE:TDOC) shares in the week since its second-quarter report, with the stock down 14% to US$7.40. Revenues of US$632m arrived in line with expectations, although statutory losses per share were US$0.19, an impressive 28% smaller than what broker models predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Teladoc Health's 24 analysts are forecasting 2025 revenues to be US$2.52b, approximately in line with the last 12 months. Losses are forecast to narrow 5.3% to US$1.12 per share. Before this earnings announcement, the analysts had been modelling revenues of US$2.52b and losses of US$1.14 per share in 2025.

See our latest analysis for Teladoc Health

The consensus price target was unchanged at US$9.13, suggesting that the business - losses and all - is executing in line with estimates. 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. The most optimistic Teladoc Health analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$7.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Teladoc Health shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2025. This indicates a significant reduction from annual growth of 17% 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 9.9% 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 reconfirmed 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Teladoc Health going out to 2027, 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.

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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.