Shares of Teladoc Health (NYSE:TDOC) jumped on Thursday, rising about 6% as of 1:40 p.m. EDT. The stock's gain came after the company announced second-quarter results.
Shares of the telehealth specialist were likely up because the company's quarterly revenue and management's guidance for its third-quarter revenue were both far higher than analysts were expecting. In addition, many analysts boosted their price targets for the growth stock after the report was released.
Teladoc reported a loss per share of $0.34 on revenue of $241 million. Analysts, on average, were expecting a loss per share of $0.23 and revenue of $221 million.
The better-than-expected top line represented a major acceleration in the company's revenue growth rate. Total revenue was up 85% year over year, compared to 41% revenue growth in the first quarter of 2020.
The telehealth platform provider is benefiting from a huge acceleration in the adoption of virtual care. Total visits were up 203% year over year during the quarter.
Showing how much the report impressed the Street, nine analysts have already lifted their 12-month price targets for the stock since the second-quarter update was released yesterday afternoon.
Management expects an even bigger third quarter. Teladoc guided for revenue during the period to be between $275 million and $285 million. Analysts, on average, were expecting third-quarter revenue of $217 million.
Capturing the company's significant momentum amid the coronavirus pandemic and the expected contribution of the company's recent acquisition of InTouch Health, the midpoint of Teladoc's third-quarter revenue guidance range implies 103% year-over-year growth.