Medifast (NYSE: MED) reported earnings on March 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Medifast missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank significantly.

Gross margins improved, operating margins dropped, net margins shrank.

Revenue details
Medifast booked revenue of $69.6 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $70.9 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $63.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.10. The six earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS of $0.08 for Q4 were 67% lower than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.2%, 100 basis points better than the prior-year quarter. Operating margin was 2.4%, 570 basis points worse than the prior-year quarter. Net margin was 1.7%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.9 million. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $339.1 million. The average EPS estimate is $1.58.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 265 members out of 315 rating the stock outperform, and 50 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Medifast a green thumbs-up, and 14 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 $20.00.

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