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Medifast Gears Up for Q3 Earnings: Here's What You Should Know
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Medifast, Inc. (MED - Free Report) is likely to register a decrease in both top and bottom lines when it reports third-quarter 2024 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $135.5 million, which indicates a 42.6% decline from the year-ago period.
The consensus mark for the bottom line has remained unchanged in the past 30 days at a loss of 15 cents, indicating a substantial decline from the prior-year quarter’s $2.12. MED has a trailing four-quarter earnings surprise of 64.5%, on average and delivered 155.6% for the same in the last reported quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Things to Consider Ahead of MED’s Upcoming Results
Medifast has been grappling with macroeconomic challenges, including intensified competition in the health and wellness sector, the disruptive rise of GLP-1 medication and a widespread decline in consumer spending, which are likely to persist in the near term. These factors have raised significant concerns for the upcoming third quarter.
Management projects revenues between $125 million and $145 million for the third quarter of 2024, indicating a continued decline in the number of active earning OPTAVIA Coaches. This decrease is attributed to ongoing challenges in customer acquisition stemming from the increasing acceptance of GLP-1 medications in the market.
Medifast has been battling rising SG&A costs. As the operating landscape remains difficult, Medifast intends to have made significant spending to boost customer acquisition. These initiatives involve strategic investments in marketing and product development, which are crucial for driving long-term growth. However, these investments might negatively affect EPS in the short term.
The company expects to incur loss in the band of 5-70 cents per share for the third quarter. This forecast accounts for an anticipated expenditure of $9 million on company-led marketing initiatives and an additional $4 million for the coach convention.
Nonetheless, Medifast has been proactively implementing a series of measures to propel its growth trajectory. The company has been enhancing its product offerings, expanding customer acquisition channels and elevating the customer experience. Medifast has been also testing new growth channels through its collaboration with LifeMD, targeting audiences interested in GLP-1 medications and those seeking lifestyle support beyond medication.
Apart from this, the company has been benefiting from its 'Fuel for the Future' program, a strategic initiative aimed at optimizing expenditures across the business, thereby fueling efficiency and reducing costs. These factors are likely to have offered some respite in the quarter under review.
What the Zacks Model Predicts for MED
Our proven model doesn’t conclusively predict an earnings beat for Medifast this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Medifast currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
The company is likely to register top and bottom-line growth when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $247.6 million, which indicates nearly 23.4% growth from the prior-year quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Freshpet’s third-quarter earnings is pegged at 16 cents per share, indicating a 206.7% increase from the year-ago quarter. FRPT has a trailing four-quarter earnings surprise of 132.9%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +5.82% and currently carries a Zacks Rank of 3. ELF's top line is anticipated to advance year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $291 million, which indicates a 35% increase from the year-ago quarter’s reported figure.
The company is expected to register a decline in the bottom line. The consensus estimate for e.l.f. Beauty’s second-quarter earnings is pegged at 44 cents per share, implying a decline of 46.3% from the year-ago quarter. ELF has a trailing four-quarter earnings surprise of 40.3%, on average.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. OLLI's top line is anticipated to increase year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure.
The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago quarter. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.
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Medifast Gears Up for Q3 Earnings: Here's What You Should Know
Medifast, Inc. (MED - Free Report) is likely to register a decrease in both top and bottom lines when it reports third-quarter 2024 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $135.5 million, which indicates a 42.6% decline from the year-ago period.
The consensus mark for the bottom line has remained unchanged in the past 30 days at a loss of 15 cents, indicating a substantial decline from the prior-year quarter’s $2.12. MED has a trailing four-quarter earnings surprise of 64.5%, on average and delivered 155.6% for the same in the last reported quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
Things to Consider Ahead of MED’s Upcoming Results
Medifast has been grappling with macroeconomic challenges, including intensified competition in the health and wellness sector, the disruptive rise of GLP-1 medication and a widespread decline in consumer spending, which are likely to persist in the near term. These factors have raised significant concerns for the upcoming third quarter.
Management projects revenues between $125 million and $145 million for the third quarter of 2024, indicating a continued decline in the number of active earning OPTAVIA Coaches. This decrease is attributed to ongoing challenges in customer acquisition stemming from the increasing acceptance of GLP-1 medications in the market.
Medifast has been battling rising SG&A costs. As the operating landscape remains difficult, Medifast intends to have made significant spending to boost customer acquisition. These initiatives involve strategic investments in marketing and product development, which are crucial for driving long-term growth. However, these investments might negatively affect EPS in the short term.
The company expects to incur loss in the band of 5-70 cents per share for the third quarter. This forecast accounts for an anticipated expenditure of $9 million on company-led marketing initiatives and an additional $4 million for the coach convention.
Nonetheless, Medifast has been proactively implementing a series of measures to propel its growth trajectory. The company has been enhancing its product offerings, expanding customer acquisition channels and elevating the customer experience. Medifast has been also testing new growth channels through its collaboration with LifeMD, targeting audiences interested in GLP-1 medications and those seeking lifestyle support beyond medication.
Apart from this, the company has been benefiting from its 'Fuel for the Future' program, a strategic initiative aimed at optimizing expenditures across the business, thereby fueling efficiency and reducing costs. These factors are likely to have offered some respite in the quarter under review.
What the Zacks Model Predicts for MED
Our proven model doesn’t conclusively predict an earnings beat for Medifast this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Medifast currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Freshpet (FRPT - Free Report) currently has an Earnings ESP of +11.99% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register top and bottom-line growth when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $247.6 million, which indicates nearly 23.4% growth from the prior-year quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Freshpet’s third-quarter earnings is pegged at 16 cents per share, indicating a 206.7% increase from the year-ago quarter. FRPT has a trailing four-quarter earnings surprise of 132.9%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +5.82% and currently carries a Zacks Rank of 3. ELF's top line is anticipated to advance year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $291 million, which indicates a 35% increase from the year-ago quarter’s reported figure.
The company is expected to register a decline in the bottom line. The consensus estimate for e.l.f. Beauty’s second-quarter earnings is pegged at 44 cents per share, implying a decline of 46.3% from the year-ago quarter. ELF has a trailing four-quarter earnings surprise of 40.3%, on average.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. OLLI's top line is anticipated to increase year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure.
The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago quarter. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.