Medifast Inc. (NYSE:MED) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Medifast Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.87% to $0.51 in the quarter versus EPS of $0.46 in the year-earlier quarter.
Revenue: Rose 3.77% to $97.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Medifast Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company met the mean analyst estimate of $0.51. It missed the average revenue estimate of $101.3 million.
Quoting Management: “We are pleased with our ability to increase earnings ahead of our expectations for the second quarter,” commented Michael C. MacDonald, Medifast’s Chairman and Chief Executive Officer. “We improved our overall operational performance in the quarter and remain focused on planning our investments and initiatives to maximize profitability long-term. To this point, today we announced plans to pursue the strategic sale of our existing corporate Medifast Weight Control Centers and transition them to the franchise model over the next 12 to 18 months. We continue to be optimistic about our overall future growth prospects across Take Shape for Life, Medifast Direct, Medifast Weight Control Centers, and Wholesale Physicians.”
Key Stats (on next page)…
Revenue increased 1.1% from $96.04 million in the previous quarter. EPS increased 18.6% from $0.43 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.54 to a profit $0.53. For the current year, the average estimate has moved up from a profit of $1.77 to a profit of $1.79 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)