Medifast: Here’s What Investors Need to Know Before Earnings

Medifast (NYSE:MED) will report earnings after markets close on Wednesday, May 8th. Medifast, Inc. combines physician-supervised weight loss programs with nutritional supplements and multidisciplinary patient education programs. The Company provides an Internet-based physician and medical practitioner network to consumers. Medifast also provides a corporate wellness program for large corporations, associations, and their health insurance carriers.

Here is your Cheat Sheet to Medifast Earnings:

Earnings Expectations: Analysts expect earnings of $0.34 per share on revenues of $93.77 million. Currently, the company’s P/E ratio stands at 22.13.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.51 to a profit $0.55. For the current year, the average estimate is a profit of $1.77, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Medifast has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 105.44 169.74 257.55 298.19 356.71
Diluted EPS ($) 0.34 0.77 1.35 1.31 1.16

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 69.57 88.92 93.57 90.97 83.24
Diluted EPS ($) 0.0837 0.29 0.20 0.52 0.1355

Past Performance:
Medifast has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)