What happened
Shares of Teladoc Health (TDOC 0.47%), a telehealth company, jumped today after the company reported revenue and earnings that surpassed Wall Street's expectations in the first quarter. The strong quarter prompted management to increase its earnings and revenue outlook for the full year, which likely contributed to investors' enthusiasm today.
The stock rose by as much as 9% on Thursday and was up by 6.4% as of 2:51 p.m. ET.
So what
Teladoc reported an adjusted loss of $0.42 per share in the quarter, which was better than the analysts' consensus average estimate of a loss of $0.51. Revenue also impressed investors as sales of $629 million rose 11% from the year-ago quarter and outpaced Wall Street's consensus estimate of $618 million.
"We have solid momentum heading into the rest of the year as the market embraces Teladoc Health's unified whole-person care experience," CEO Jason Gorevic said in a press release.
Management also noted that margins improved in the quarter, with the adjusted gross margin increasing from 66.9% in the year-ago quarter to 69.8%.
Now what
Teladoc's strong first-quarter results led the company's management to increase its earnings and revenue guidance for the full year. The company now expects a loss of between $1.25 and $1.70 per share for 2023, compared to the previous range of between $1.25 to $1.75.
And the company is guiding for full-year revenue to be $2.63 billion at the midpoint of guidance, up from the previous estimate of $2.61 billion.
With the company delivering solid results in the quarter and increasing its outlook for the full year, it's not surprising to see the telehealth stock climbing higher today.
