Medifast, Inc. Second Quarter Earnings Sneak Peek

Medifast, Inc. (NASDAQ:MED) will unveil its latest earnings on Thursday, August 4, 2011. Medifast, Inc. is engaged in the production, distribution and sale of weight management and disease management products and other consumable health and diet products. Herbalife Ltd. Second Quarter Earnings Sneak Peek>>

Medifast, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a rise of 26.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 47 cents. For the year, analysts are projecting profit of $1.68 per share, a rise of 24.4% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 44 cents per share against a mean estimate of profit of 41 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 10 cents.

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Wall St. Revenue Expectations: On average, analysts predict $81.8 million in revenue this quarter, a rise of 22.8% from the year ago quarter. Analysts are forecasting total revenue of $318.4 million for the year, a rise of 23.6% from last year’s revenue of $257.6 million.

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

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 43.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 63.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 29.7% while it rose 12.4% in the fourth quarter of the last fiscal year and 67.5% in the third quarter of the last fiscal year.

Competitors to Watch: eDiets.com 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 Price Performance: During June 2, 2011 to July 29, 2011, the stock price had fallen $6.70 (-25.8%) from $26 to $19.30. The stock price saw one of its best stretches over the last year between May 20, 2011 and May 31, 2011 when shares rose for seven-straight days, rising 11.1% (+$2.66) over that span. It saw one of its worst periods between January 12, 2011 and January 21, 2011 when shares fell for seven-straight days, falling 7.6% (-$2.01) over that span. Shares are down $9.58 (-33.2%) year to date.

(Source: Xignite Financials)

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