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Factors to Consider Ahead of Medifast's (MED) Q1 Earnings

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Medifast, Inc. (MED - Free Report) is likely to register a top-and bottom-line decline from the year-ago fiscal quarter’s reading when it reports first-quarter 2023 earnings on May 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $314.7 million, suggesting a decline of 24.7% from the prior-year fiscal quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $2.26 per share. This indicates a drop of 37.1% from the figure reported in the prior-year fiscal quarter.

We expect first-quarter net sales to be down 24.7% year over year to $314.7 million. The bottom line will likely decline 41.4% to $2.12 a share.

This weight loss, weight management and healthy living products company has a trailing four-quarter earnings surprise of 40.6%, on average. MED delivered an earnings surprise of 69.7% in the last reported quarter.

MEDIFAST INC Price and EPS Surprise

 

MEDIFAST INC Price and EPS Surprise

MEDIFAST INC price-eps-surprise | MEDIFAST INC Quote

 

Things To Consider

Medifast is battling cost inflation, marring its margin performance. Reduced Coach productivity is a concern for the company’s performance. During its last earnings release, management issued a soft first-quarter 2023 guidance, which reflects the impact of macroeconomic volatility and increased inflation in customer acquisition. Management anticipates quarterly revenues in the range of $300-$320 million. This indicates a year-over-year decline from $417.6 million reported in first-quarter 2022. The company expects first-quarter 2023 earnings per share (EPS) in the band of $1.75-$2.40, calling for a decline from $3.59 reported in the first quarter of 2022.

Nevertheless, Medifast is focused on its strategies like driving product and program innovation, expanding segments and geographies and improving coach and client experiences.

What the Zacks Model Unveils

Our proven model does not 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Medifast carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.

Altria Group (MO - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register an increase in the top and the bottom line when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at nearly $5 billion, suggesting a rise of 3.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MO’s quarterly EPS of $1.19 suggests a 6.3% increase from the year-ago quarter. Altria has a trailing four-quarter earnings surprise of 0.3%, on average.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +3.07% and a Zacks Rank of 3. The company is likely to register a top- and bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 million, which suggests a jump of 10.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Sysco’s bottom line has remained unchanged at 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure. Sysco has a trailing four-quarter earnings surprise of 7.1%, on average.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. HSY is likely to register top-and bottom-line growth when it reports first-quarter 2023 results.

The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, suggesting a rise of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to $2.67 per share, suggesting growth of 5.5% from the figure reported in the prior-year quarter. HSY has a trailing four-quarter earnings surprise of 11.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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