Medifast (MED) Queued for Q2 Earnings: Things to Consider
Medifast, Inc. MED will likely register a top- and bottom-line decline from the year-ago fiscal quarter’s reading when it reports second-quarter 2023 earnings on Aug 7. The Zacks Consensus Estimate for quarterly revenues is pegged at $253.5 million, suggesting a decline of 44.1% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchnaged in the past 30 days to $1.44 per share. This indicates a plunge of 62.8% from the figure reported in the prior-year fiscal quarter. The weight loss, weight management and healthy living products company has a trailing four-quarter earnings surprise of 53.6%, on average. MED delivered an earnings surprise of 52.9% in the last reported quarter.
Things to Consider
Medifast has been battling challenges related to customer acquisition as coaches are utilizing more time to engage new customers. The downside was caused by changes in customer spending, social media algorithms and a competitive landscape made of new technologies and medical interventions. The company has been bearing the brunt of higher cost inflation in raw ingredients, shipping and labor, putting pressure on its margins.
Management expects second-quarter 2023 revenues in the range of $250-$270 million. This shows a year-over-year decline from $453.3 million reported in the second quarter of 2022. It anticipates quarterly earnings per share (EPS) in the range of $1.32-$1.44 compared with $3.87 reported in the second quarter of 2022.
It anticipates pressurized operating margin for the to-be-reported quarter due to accelerated investment in growth initiatives, the timing of compensation and deleveraging fixed costs. We expect an operating margin of 7.3% in the second quarter, a decline of 350 basis points year over year.
MEDIFAST INC Price and EPS Surprise
MEDIFAST INC price-eps-surprise | MEDIFAST INC Quote
Medifast focuses on strategies like driving product and program innovation, expanding segments and geographies and improving coach and client experiences. These factors are likely to have been a breather.
What the Zacks Model Unveils
Our proven model doesn’t conclusively 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 #3 and has an Earnings ESP of 0.00%.
Stocks With the Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Coty COTY has an Earnings ESP of +20.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s top and bottom lines are expected to increase year over year when it reports its upcoming quarterly results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, suggesting a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Inter Parfums IPAR has an Earnings ESP of +6.22% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its second-quarter revenues is pegged at $309.1 million, suggesting growth of 26.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings is pegged at 89 cents per share, suggesting growth of 3.5% from the year-ago quarter’s reported number. IPAR has an earnings surprise of 37.2% in the last reported quarter.
Celsius Holdings, Inc. CELH currently has an Earnings ESP of +28.33% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $281.1 million, calling for growth of 82.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 30 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Coty (COTY) : Free Stock Analysis Report
MEDIFAST INC (MED) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
