Medifast, Inc. Earnings: Net Income Rises Again

Medifast, Inc. (NASDAQ:MED) reported net income above Wall Street’s expectations for the first quarter. Medifast, Inc. is engaged in the production, distribution and sale of weight management and disease management products and other consumable health and diet products.

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Medifast Earnings Cheat Sheet for the First Quarter

Results: Net income for Medifast, Inc. rose to $6.4 million (44 cents/share) vs. $4.9 million (33 cents/share) in the same quarter a year earlier. A rise of 29.7% from the year earlier quarter.

Revenue: Rose 22.6% to $74.3 million YoY.

Actual vs. Wall St. Expectations: MED beat the mean analyst estimate of 41 cents/share. Estimates ranged from 40 cents per share to 44 cents per share.

Quoting Management: “We are very pleased with our increased sales momentum and gross margin expansion in the first quarter as our vertically integrated operations and increased capacity allowed us to improve the leverage of our business model and report strong earnings,” stated Michael S. McDevitt, Medifast’s Chief Executive Officer. “Our continued growth and improved financial results validates the consistent, growing awareness for Medifast’s clinically tested physician-recommended products with consumers that are looking to achieve weight-loss and weight maintenance.” Mr. McDevitt continued, “We intend to remain focused on the investment and advancement of our corporate infrastructure and personnel to increase our consumer reach in new and existing markets utilizing innovative support, communication and marketing strategies, as well as the introduction of new products through added production and manufacturing capacity to support our future growth.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 12.4% and in the third quarter of the last fiscal year, the figure rose 67.5%.

Competitors to Watch: Inc. (NASDAQ:DIET), Weight Watchers Intl., Inc. (NYSE:WTW), NutriSystem Inc. (NASDAQ:NTRI), Herbalife Ltd. (NYSE:HLF), Schiff Nutrition Intl. Inc. (NYSE:WNI), Reliv International, Inc (NASDAQ:RELV), Hi-Tech Pharmacal Co. (NASDAQ:HITK), Cardium Therapeutics Inc. (AMEX:CXM), Nutraceutical Int’l Corp. (NASDAQ:NUTR), and Hospira, Inc. (NYSE:HSP)

Stock Performance: Shares of MED are up over 11% from the previous close.

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