Medifast, Inc. First Quarter Earnings Sneak Peek

Medifast, Inc. (NYSE:MED) will unveil its latest earnings on Tuesday, May 8, 2012. Medifast is engaged in the production, distribution, and sale of weight management and disease management products and other consumable health and diet products.

Medifast, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 37 cents per share, a decline of 15.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 37 cents during the last month. Analysts are projecting profit to rise by 4.6% compared to last year’s $1.37.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 8 cents per share versus a mean estimate of profit of 21 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 15.6% in revenue from the year-earlier quarter to $85.9 million.

Analyst Ratings: Analysts are bullish on this stock, with four analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 65.8% to $1.2 million (9 cents a share) from $3.4 million (24 cents a share) the year earlier, missing analyst expectations. Revenue rose 10.4% to $69.6 million from $63 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 15.9% over the last four quarters.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 11.9% in the third quarter of the last fiscal year and then again in the fourth quarter of the last fiscal year.

Stock Price Performance: Between March 6, 2012 and May 2, 2012, the stock price had risen $3.24 (21%), from $15.41 to $18.65. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 13, 2012, when shares rose for eight straight days, increasing 9.8% (+$1.57) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 15% (-$2.30) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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