Medifast Increases Sales but Misses Estimates on Earnings
Medifast (NYS: MED) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Medifast beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Medifast booked revenue of $88.9 million. The six analysts polled by S&P Capital IQ anticipated sales of $86.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $74.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The four earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.29 for Q1 were 34% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.1%, 120 basis points worse than the prior-year quarter. Operating margin was 6.9%, 660 basis points worse than the prior-year quarter. Net margin was 4.5%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $90.3 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $345.8 million. The average EPS estimate is $1.26.
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Medifast a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medifast is outperform, with an average price target of $19.14.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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