Wellness company Medifast (NYSE:MED) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Medifast beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $140.2 million, down 40.6% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.
Is Medifast a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Medifast’s revenue to decline 40.2% year on year to $114.3 million, improving from the 43.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Medifast has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at Medifast’s peers in the personal care segment, some have already reported their Q4 results, giving us a hint as to what we can expect. e.l.f. Beauty delivered year-on-year revenue growth of 31.1%, beating analysts’ expectations by 7.8%, and Estée Lauder reported a revenue decline of 6.4%, topping estimates by 0.7%. e.l.f. Beauty traded down 19.7% following the results, while Estée Lauder was also down 20.4%.
Read our full analysis of e.l.f. Beauty’s results here and Estée Lauder’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the personal care stocks have shown solid performance, the group has generally underperformed, with share prices down 3.8% on average over the last month. Medifast is up 3% during the same time and is heading into earnings with an average analyst price target of $16.50 (compared to the current share price of $16.21).
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