Teladoc Health (TDOC +1.06%) has been a beaten-down stock for so long, it's almost surprising when it hits a bullish period. That's what happened in October to the telemedicine specialist, with its shares racing almost 11% higher in value over the month. They're still far down from their pandemic-era peak, but any up month is worthy of celebration.
The short and long of it
The first bullish factor pushing Teladoc's shares in the right direction came near the start of the month. It came from a short-seller -- which, given that such businesses and individuals tend to strongly criticize the stocks on their radar, came as something of a welcome surprise.
Image source: Getty Images.
That short-seller, stock analysis website Citron Research, posted on X (formerly Twitter) that Teladoc Health has significant potential since it can benefit massively from deploying artificial intelligence (AI). Citron also said that once the current federal government shutdown is over, the telemedicine company should see a surge in business (presumably from patients benefiting from government support).
Later that month Teladoc got another boost, albeit a fairly minor one, from an analyst's modest price-target increase. Citigroup's Daniel Grosslight added $1 per share to his fair value assessment, for a new level of $10.50. That wasn't enough to move him from his existing recommendation, though, which was neutral.
Several days after that, a stronger tailwind came from the company itself. It announced in a press release that CFO Mala Murthy is stepping down. She'll remain in her post until Nov. 21, indicating that the parting is at least somewhat amicable. That will also give the company time to find suitable candidates for the job.
In the same document, Teladoc reaffirmed its existing guidance for full-year revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) not in accordance with generally accepted accounting practices (GAAP). It also provided preliminary third-quarter figures for both of those line items. The $626.4 million on the top line beat the consensus analyst estimate of almost $625.5 million.
NYSE: TDOC
Key Data Points
Earnings release just before Spooky Day
Teladoc Health wrapped up October with the official release of those third-quarter results two days before Halloween. That $626.4 million was down by 2% year over year, cementing the top-line beat, while GAAP net loss deepened by 49% to $49.5 million. At $0.28 per share, the bottom-line result was slightly worse than the consensus $0.26 expected by prognosticators tracking the stock.
Teladoc's full-year guidance -- for revenue of $2.51 billion to nearly $2.54 billion, and a GAAP loss per share of $1.10 to $1.25 -- fell within existing average analyst estimates.
