OWINGS MILLS, Md. (AP) -- Weight-loss company Medifast Inc. said Tuesday its net income climbed in the second quarter as sales improved, but it lowered its revenue estimate for the full year. It's stock fell more than 5 percent in extended trading.
Medifast said its net income more than doubled and sales grew 4 percent. Revenue from its Take Shape for Life personal coaching unit rose 10 percent, which made up for lower sales from the company's web site and phone orders and from company owned stores and wholesale physicians. The company has 86 corporate-owned locations and said Tuesday that it will sell them, transitioning to a franchise model.
It expects to complete the sales over the next year to 18 months.
Medifast said its net income grew to $7.1 million, or 51 cents per share, from $2.8 million, or 20 cents per share. Revenue rose to $97.1 million from $93.6 million.
Analysts were expecting net income of 51 cents per share and $101.3 million in revenue, according to FactSet.
The company said Take Shape for Life revenue rose 10 percent to $61.4 million.
Medifast had 86 corporate locations and 36 franchise locations at the end of the quarter.
The company said it still expects to earn between $1.70 and $1.80 per share in 2013, but it now forecasts $375 million to $385 million in revenue. Medifast's last guidance called for $385 million to $400 million in revenue.
Analysts expect the company to report net income of $1.79 per share and $387.4 million in revenue for the year.
The company is calling for net income of 38 to 42 cents per share on revenue of $93 million to $96 million in the third quarter. It reported net income of 52 cents per share and $91 million in revenue in the third quarter of 2012.
Analysts expect 52 cents per share and $100.1 million on average.
Medifast shares fell $1.49 to $26 in aftermarket trading following the release of the earnings report. They ended the regular session down 18 cents to $27.49 Tuesday.