Uncovering Potential: Medifast's Earnings Preview

Medifast (NYSE:MED) will release its quarterly earnings report on Monday, 2025-04-28. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Medifast to report an earnings per share (EPS) of $-0.25.

The announcement from Medifast is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

Last quarter the company beat EPS by $0.26, which was followed by a 11.41% drop in the share price the next day.

Here's a look at Medifast's past performance and the resulting price change:

Quarter	Q4 2024	Q3 2024	Q2 2024	Q1 2024
EPS Estimate	-0.16	-0.28	0.37	0.78
EPS Actual	0.10	0.35	0.92	0.66
Price Change %	-11.0%	8.0%	-3.0%	-22.0%

Tracking Medifast's Stock Performance

Shares of Medifast were trading at $12.17 as of April 24. Over the last 52-week period, shares are down 65.73%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Take on Medifast

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Medifast.

Medifast has received a total of 1 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $16.5, the consensus suggests a potential 35.58% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of FitLife Brands and Beauty Health, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for FitLife Brands, with an average 1-year price target of $21.0, suggesting a potential 72.56% upside.
• Analysts currently favor an Neutral trajectory for Beauty Health, with an average 1-year price target of $1.5, suggesting a potential 87.67% downside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for FitLife Brands and Beauty Health, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Medifast	Neutral	-37.70%	$88.22M	0.38%
FitLife Brands	Buy	12.89%	$6.21M	5.89%
Beauty Health	Neutral	-13.76%	$52.35M	-18.52%

Key Takeaway:

Medifast ranks at the bottom for Revenue Growth with a decrease of 37.70%. It also ranks at the bottom for Gross Profit with $88.22M. However, it ranks in the middle for Return on Equity with 0.38%.

Delving into Medifast's Background

Medifast Inc is a old health and wellness company known for its habit-based and coach-guided lifestyle solution OPTAVIA, which provides people with a simple, yet comprehensive approach to address obesity and support a healthy life. OPTAVIA provides unparalleled coaching support along with community, tailored nutrition and healthy habits, and empowers people to master their weight loss journey through each stage of life. The company has access to GLP-1 medications where clinically appropriate. Medifast remains committed to its mission of offering Lifelong Transformation, Making a Healthy Lifestyle Second Nature.

Financial Insights: Medifast

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Medifast's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -37.7% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Medifast's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.67%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Medifast's ROE stands out, surpassing industry averages. With an impressive ROE of 0.38%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Medifast's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.28%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Medifast's debt-to-equity ratio is below the industry average. With a ratio of 0.08, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Medifast visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.