Medifast (MED) Queues for Q3 Earnings: What Awaits the Stock?
Medifast, Inc. MED is likely to register a top-and-bottom-line decline when it reports third-quarter 2023 earnings on Nov 6. The Zacks Consensus Estimate for revenues is pegged at $225.1 million, suggesting a decrease of 42.4% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.12 per share. This indicates a decline of 66.3% from the year-ago quarter’s reported figure. MED has a trailing four-quarter earnings surprise of 72.2%, on average.
Factors to Note
On its last earnings call, management highlighted that customer acquisition remains challenging in the current environment, with coaches taking up more time to engage new customers. This can be attributed to changes in customer spending, social media algorithms and a competitive landscape.
Management expects revenues in the $220-$240 million band in the third quarter of 2023. This indicates a year-over-year decline from the $390.4 million reported in the third quarter of 2022. The company expects earnings per share (EPS) between 71 cents and $1.32 for the third quarter, whereas it reported $3.32 in the third quarter of 2022. The guidance includes the impacts of investments in growth initiatives, which are expected to continue throughout the year, affecting profitability.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
However, Medifast’s growth strategies bode well. These include driving product and program innovation, expanding segments and geographies, improving coach and client experiences, utilizing deeper data and insights and optimizing operational effectiveness.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Medifast this time. 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, which is not the case here.
Medifast carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums IPAR currently has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is likely to register top-and-bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $368 million, indicating a rise of 31.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly EPS of $1.33 suggests an increase of 2.3% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Church & Dwight CHD has an Earnings ESP of +1.65% and a Zacks Rank #3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.8% from the figure reported in the prior-year quarter.
Although the Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, it suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
Monster Beverage MNST currently has an Earnings ESP of +1.98% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $1.9 billion, suggesting growth of 14.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 40 cents per share, which indicates 33.3% growth from the year-ago quarter's reported number. MNST delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
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Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
MEDIFAST INC (MED) : Free Stock Analysis Report
