Wellness company Medifast (NYSE: MED) will be reporting results this Monday after market hours. Here’s what you need to know.
Medifast beat analysts’ revenue expectations last quarter, reporting revenues of $76.04 million, down 34.3% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Medifast a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Medifast’s revenue to decline 31.1% year on year, improving from the 37.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Medifast has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Medifast’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vita Coco delivered year-on-year revenue growth of 28.1%, beating analysts’ expectations by 3%, and WD-40 reported revenues up 24.3%, topping estimates by 12.9%. Vita Coco traded down 11.4% following the results while WD-40 was up 10.6%.
Read our full analysis of Vita Coco’s results here and WD-40’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Medifast is down 10.9% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $9.83).
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