Medifast (NYSE:MED) Posts Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Medifast (NYSE:MED) issued its quarterly earnings data on Monday. The specialty retailer reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.16, FiscalAI reports. The company had revenue of $72.05 million during the quarter, compared to analyst estimates of $71.30 million.

Here are the key takeaways from Medifast’s conference call:

• Revenue and coach count continued to decline: Q3 revenue fell 19.4% year over year to $72 million, while active earning coaches dropped to approximately 10,200 from 19,500, largely due to GLP-1 adoption. Management expects coach count to decline further through year-end.
• Coach productivity improved materially: Revenue per active earning coach increased 54.1% year over year to $7,064, marking the fourth consecutive quarter of productivity growth. Management expects productivity to continue rising as the company focuses on building larger, more productive Executive Director organizations.
• Management remains on track for Q4 profitability: The company guided to fourth-quarter revenue of $55 million to $75 million, EPS of $0 to $0.25, and adjusted EBITDA excluding interest income of $2 million to $6 million. Catalyst cost reductions, process improvements, and AI initiatives are expected to support profitability and future operating leverage.
• Trilivy’s launch is gaining early field adoption: The new metabolic-health brand, Reset products, compensation plan, and coach-training platform were launched during the quarter, with 95% of active earning coaches offering the new Reset line in September. Management believes the platform can position the company alongside GLP-1 treatments and broaden its addressable market.
• The balance sheet remains strong: Medifast ended the quarter with $172.5 million of cash and investments and no debt, while Catalyst is intended to align the cost structure with current sales without impairing the company’s ability to scale.

Medifast Price Performance

Shares of NYSE:MED opened at $12.48 on Wednesday. The firm has a market capitalization of $139.53 million, a PE ratio of -3.38 and a beta of 0.68. Medifast has a 1 year low of $9.22 and a 1 year high of $13.45. The firm’s 50-day moving average is $11.96 and its two-hundred day moving average is $11.32.

Insider Activity at Medifast

In other Medifast news, Director Parsa Kiai bought 43,150 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The shares were purchased at an average cost of $12.26 per share, with a total value of $529,019.00. Following the purchase, the director directly owned 707,492 shares in the company, valued at approximately $8,673,851.92. This represents a 6.50% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Daniel R. Chard sold 9,545 shares of the company’s stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $11.98, for a total transaction of $114,349.10. Following the sale, the director directly owned 140,153 shares in the company, valued at approximately $1,679,032.94. The trade was a 6.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders bought 119,966 shares of company stock valued at $1,423,576. Insiders own 3.70% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have commented on MED shares. Zacks Research upgraded Medifast from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 13th. Weiss Ratings raised Medifast from a “sell (e+)” rating to a “sell (d)” rating in a research note on Monday, August 17th. One analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $12.00.

Medifast Company Profile

Medifast, Inc (NYSE: MED) is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.

The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.