Oppenheimer reiterated its Outperform rating on Teladoc Inc (NYSE: TDOC), lowering the price target to $24 from $25.
The company reported Q2 revenues of $26.5 million, missing Oppenheimer's estimate of $28.1 million and consensus of $28.2
million, on lower advertising spending. Q2 EPS loss was ($0.38) compared to the analysts' ($0.41) and consensus ($0.39)
estimates.
The company posted a surprise miss on numbers and trimmed its annual guidance citing increasing costs associated with the
Direct-To-Consumer (DTC) segment and delays in implementations at two large health plan clients, which caused their start dates to
be pushed to Jan'17 from Q3.
"The company is taking on new strategies to diversify DTC channels, but the revenue contribution in CY16 will be below
expectations. We see the delays at the two large client start dates as not unique and part of the unpredictability involved in
dealing with large health plans and give them a pass," wrote Oppenheimer.
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