Medifast Inc. Third Quarter Earnings Sneak Peek

Medifast, Inc. (NYSE:MED) will unveil its latest earnings on Thursday, November 3, 2011. 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 estimate of analysts is for profit of 37 cents per share, a decline of 5.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 44 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 37 cents during the last month. For the year, analysts are projecting net income of $1.50 per share, a rise of 11.1% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported profit of 41 cents per share against a mean estimate of 47 cents. Two quarters ago, it beat expectations by 3 cents with net income of 44 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 17.3% in revenue from the year-earlier quarter to $78.9 million.

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

A Look Back: In the second quarter, profit rose 7.3% to $5.9 million (41 cents a share) from $5.5 million (38 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 17.4% to $78.3 million from $66.7 million.

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 31.5%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 49.5% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 29.7% in the first quarter and 12.4% in the fourth quarter of the last fiscal year.

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 Price Performance: During September 1, 2011 to October 28, 2011, the stock price had risen $1.67 (10.7%) from $15.56 to $17.23. 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 $11.65 (-40.3%) year to date.

(Source: Xignite Financials)

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