What happened
Shares of Teladoc Health (TDOC 2.46%) 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.
So what
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.
Now what
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.