Wellness company Medifast (NYSE:MED) will be reporting results tomorrow after market hours. Here’s what investors should know.
Medifast missed analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $168.6 million, down 43.1% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
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 41.4% year on year to $138.2 million, a further deceleration from the 39.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 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 4.5% on average.
Looking at Medifast’s peers in the personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Herbalife’s revenues decreased 3.2% year on year, missing analysts’ expectations by 1%, and Estée Lauder reported a revenue decline of 4.5%, in line with consensus estimates. Herbalife traded up 10.2% following the results while Estée Lauder was down 23.6%.
Read our full analysis of Herbalife’s results here and Estée Lauder’s results here.
Investors in the personal care segment have had steady hands going into earnings, with share prices flat over the last month. Medifast’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $17.25 (compared to the current share price of $18.58).
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