The stock has corrected about 7% after the earnings. The revenue estimates of $101.3 million were missed, and the revenue guidance for 2013 was narrowed. The EPS guidance for the full year was maintained. The company reported growth in the top and the bottom-line, both sequentially and on a year-on-year basis. The revenue increased from $93.57 million in Q2'12 to $97.07 million in Q2'13 (an increase of 3.7%). The net income increased 151% from $2.81 million to $7.07 million during the same period. In the previous quarter, the company had reported revenues of $96.04 million and the net income of $5.93 million. The revenue guidance for 2013 is $375 million to $385 million, and EPS is expected to be in the range of $1.70-$1.80. The average analyst estimate for EPS is $1.79. The Take Shape for Life, the company’s direct sales channel, did well and the revenues increased by 10 percent to $61.4 million. Competition in the segment is fierce with big and small players using different approaches to tackle the weight problem. There is Weight Watchers (WTW) which is not doing so well, but there is Herbalife (HLF) which has been delivering good numbers. New products are launched from time to time, like the vitamin derivative from Chromadex Corporation (CDXC). Medifast appears to be preparing for faster expansion to achieve its revenue target of $1 billion in 2017. It recently announced plans to pursue the strategic sale of its existing corporate Medifast Weight Control Centers and transition them to the franchise model over the next 12 to 18 months. This move is expected to make Medifast more financially flexible and help in faster expansion at lesser cost. Many analysts consider Medifast as a good investment due to the valuations (forward P/E of 12.36) and relatively better balance sheet (negligible debt and good liquidity).