SOC Telemed Slips On Wider-Than-Expected 4Q Loss


Shares of SOC Telemed closed 1.9% lower in Wednesday’s extended trading session after the acute care telemedicine provider reported a wider-than-expected loss in 4Q.

The company’s bottom-line results were mainly hurt by a decline in revenues, stock-based compensations, and transaction costs associated with the merger of Healthcare Merger Corporation.

SOC Telemed (TLMD) reported a GAAP loss of $1.87 per share which is wider than analysts’ expectations of $0.10 as well as the year-ago quarter’s loss of $0.22.

Revenues declined 13% to $14.5 million year-over-year mainly due to lower utilization of core services resulting from the COVID-19 pandemic-led decline in hospital visits. However, top-line result surpassed Street estimates of $13.9 million.

For 2021, SOC Telemed forecasts revenues between $107 million and $113 million. Moreover, it anticipates adjusted EBITDA to be in the range of negative $15 million to negative $19 million. (See SOC Telemed stock analysis on TipRanks)

In a separate announcement, SOC Telemed said that it has completed the acquisition of Access Physicians in a cash and stock transaction worth approximately $194 million. The company expects the acquisitions to contribute approximately 30%-35% towards the 2021 total revenues guidance range.

Last month, Credit Suisse analyst Jailendra Singh initiated coverage on the stock with a Buy rating and price target of $11 (75.4% upside potential). Singh believes that acute care telemedicine is likely to witness increased spending by the majority of health systems over the past 12-18 months.

The rest of the Street is bullish about the stock with a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average analyst price target of $11 implies 75.4% upside potential to current levels. Shares have lost about 36% in one year.

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