We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Medifast (MED) Queued for Q4 Earnings: Key Things to Note
Read MoreHide Full Article
Medifast, Inc. (MED - Free Report) is likely to witness a year-over-year increase in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 23. The Zacks Consensus Estimate for revenues is pegged at $376 million, suggesting a rise of 41.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $2.67 per share, indicating growth of 13.1% from the figure reported in the prior-year period. The manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products has a trailing four-quarter earnings surprise of 17.3%, on average. Medifast delivered an earnings surprise of 21.9% in the last reported quarter.
The Zacks Consensus Estimate for 2021 revenues is pegged at $1.5 billion, suggesting a jump of nearly 63% from the prior-year quarter’s reported figure. The consensus mark for 2021 earnings per share (EPS) stands at $13.67, indicating a 49.3% rise from the figure reported in the year-ago period.
Medifast has been benefiting from its OPTAVIA lifestyle solution and coaching support system. OPTAVIA follows a holistic approach by focusing on six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind and surroundings. Further, OPTAVIA combines scientifically proven programs, effective products as well as guidance from its coaches to help consumers lead a healthier lifestyle. The continued strength in OPTAVIA Coaches aided the company’s impressive third-quarter performance. Consumers’ increased inclination toward health, with a solid OPTAVIA coach-based model, has been helping MED draw new clients. The company remains committed to making further investments to improve its infrastructure to aid growth. These aspects bode well for the quarter under review.
Medifast has been undertaking several measures to drive growth. The company has been speeding up its long-term supply-chain efforts to ensure that it is able to manage the expected growth in the next few years. To this end, Medifast is focused on optimizing and increasing the capacity by strengthening its network of co-manufacturers. On its last earnings call, management highlighted that it brought a new fulfillment capacity completely online during the beginning of August 2021. This move has positively benefited the coach as well as client experience in the back half of the third quarter of 2021. Apart from this, Medifast’s focus on making technological investments bodes well.
That said, MED has been seeing high SG&A expenses for a while now, mainly due to higher OPTAVIA commission costs. Also, the company’s gross margin in the last reported quarter declined year over year due to promotional activities and elevated product and shipping costs stemming from raw material, freight and labor cost inflation. These hurdles may have impacted the performance in the quarter under review as well.
However, the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options remains an upside. Encouragingly, management raised its 2021 guidance when it posted third-quarter results. This also raises optimism for the to-be-reported quarter. It now anticipates revenues in the range of $1.51-$1.53 billion. Full-year EPS is now envisioned in the band of $13.27-$13.96. The company’s revised earnings guidance reflects solid gains from revenues and higher investments in key growth initiatives, mainly focused on the supply chain and technology.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Medifast this time. 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 #2 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.
Companies Likely to Post a Beat
Lowe's Companies (LOW - Free Report) has an Earnings ESP of +6.81% and carries a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.71 per share, suggesting a 28.6% increase from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lowe's quarterly revenues is pegged at $20.82 billion, suggesting a jump of 2.5% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 14.3%, on average.
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774 million, indicating a decrease of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters.
Home Depot (HD - Free Report) has an Earnings ESP of +6.42% and carries a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for Home Depot’s quarterly earnings has remained the same in the past 30 days at $3.20 per share, suggesting 16.8% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.61 billion, which suggests a rise of 7.3% from the figure reported in the prior-year quarter. HD has a trailing four-quarter earnings surprise of 12.1%, on average.
Image: Bigstock
Medifast (MED) Queued for Q4 Earnings: Key Things to Note
Medifast, Inc. (MED - Free Report) is likely to witness a year-over-year increase in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 23. The Zacks Consensus Estimate for revenues is pegged at $376 million, suggesting a rise of 41.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $2.67 per share, indicating growth of 13.1% from the figure reported in the prior-year period. The manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products has a trailing four-quarter earnings surprise of 17.3%, on average. Medifast delivered an earnings surprise of 21.9% in the last reported quarter.
The Zacks Consensus Estimate for 2021 revenues is pegged at $1.5 billion, suggesting a jump of nearly 63% from the prior-year quarter’s reported figure. The consensus mark for 2021 earnings per share (EPS) stands at $13.67, indicating a 49.3% rise from the figure reported in the year-ago period.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
Key Factors to Consider
Medifast has been benefiting from its OPTAVIA lifestyle solution and coaching support system. OPTAVIA follows a holistic approach by focusing on six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind and surroundings. Further, OPTAVIA combines scientifically proven programs, effective products as well as guidance from its coaches to help consumers lead a healthier lifestyle. The continued strength in OPTAVIA Coaches aided the company’s impressive third-quarter performance. Consumers’ increased inclination toward health, with a solid OPTAVIA coach-based model, has been helping MED draw new clients. The company remains committed to making further investments to improve its infrastructure to aid growth. These aspects bode well for the quarter under review.
Medifast has been undertaking several measures to drive growth. The company has been speeding up its long-term supply-chain efforts to ensure that it is able to manage the expected growth in the next few years. To this end, Medifast is focused on optimizing and increasing the capacity by strengthening its network of co-manufacturers. On its last earnings call, management highlighted that it brought a new fulfillment capacity completely online during the beginning of August 2021. This move has positively benefited the coach as well as client experience in the back half of the third quarter of 2021. Apart from this, Medifast’s focus on making technological investments bodes well.
That said, MED has been seeing high SG&A expenses for a while now, mainly due to higher OPTAVIA commission costs. Also, the company’s gross margin in the last reported quarter declined year over year due to promotional activities and elevated product and shipping costs stemming from raw material, freight and labor cost inflation. These hurdles may have impacted the performance in the quarter under review as well.
However, the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options remains an upside. Encouragingly, management raised its 2021 guidance when it posted third-quarter results. This also raises optimism for the to-be-reported quarter. It now anticipates revenues in the range of $1.51-$1.53 billion. Full-year EPS is now envisioned in the band of $13.27-$13.96. The company’s revised earnings guidance reflects solid gains from revenues and higher investments in key growth initiatives, mainly focused on the supply chain and technology.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Medifast this time. 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 #2 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.
Companies Likely to Post a Beat
Lowe's Companies (LOW - Free Report) has an Earnings ESP of +6.81% and carries a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.71 per share, suggesting a 28.6% increase from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lowe's quarterly revenues is pegged at $20.82 billion, suggesting a jump of 2.5% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 14.3%, on average.
Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774 million, indicating a decrease of nearly 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters.
Home Depot (HD - Free Report) has an Earnings ESP of +6.42% and carries a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for Home Depot’s quarterly earnings has remained the same in the past 30 days at $3.20 per share, suggesting 16.8% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.61 billion, which suggests a rise of 7.3% from the figure reported in the prior-year quarter. HD has a trailing four-quarter earnings surprise of 12.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.