The 10-second takeaway
For the quarter ended March 31 (Q1), Medifast beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Margins grew across the board.
Medifast reported revenue of $96.0 million. The four analysts polled by S&P Capital IQ hoped for a top line of $94.5 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $88.9 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 $0.43. The five earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. GAAP EPS of $0.43 for Q1 were 48% higher than the prior-year quarter's $0.29 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 75.4%, 30 basis points better than the prior-year quarter. Operating margin was 8.9%, 120 basis points better than the prior-year quarter. Net margin was 6.2%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $103.3 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $390.1 million. The average EPS estimate is $1.77.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 251 members out of 304 rating the stock outperform, and 53 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $31.90.
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