Things to Note as Medifast (MED) Lines Up for Q1 Earnings
Medifast, Inc. MED is likely to witness year-over-year growth in its top and bottom lines when it reports first-quarter 2022 earnings on May 2. The Zacks Consensus Estimate for revenues is pegged at $413 million, suggesting a rise of 21.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at $3.55 per share. This indicates growth of 2.6% from the figure reported in the prior-year period. Medifast has a trailing four-quarter earnings surprise of 19.5%, on average. This weight loss, weight management, healthy living products, and other consumable health and nutritional products company delivered an earnings surprise of around 9% in the last reported quarter.
MEDIFAST INC Price, Consensus and EPS Surprise
MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote
Key Factors to Consider
The company has been benefiting from strength in its OPTAVIA lifestyle solution and coaching support system. OPTAVIA follows a holistic approach by focusing on six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind and surroundings. Further, OPTAVIA combines scientifically-proven programs, effective products and guidance from its coaches to help consumers lead a healthier lifestyle. The relevance of MED’s offerings amid an environment where consumers are choosing health and wellness options has been an upside. Medifast’s constant focus on developing tools and programs to increase the efficiency of coaches has been yielding results.
Further, Medifast is focused on its strategies aimed at driving long-term growth. 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. Concerning these strategies, Medifast focuses on new and compelling products and programs. Further, it undertakes a systematic approach toward global markets and product adjacencies. The company is also committed to enhancing the scale via better organizations, systems, processes and alliances. Moving on, Medifast is focused on developing the culture that drives attraction, engagement and loyalty. Also, the company has been working toward data-driven decision making.
That said, MED has been seeing high SG&A expenses for a while now, mainly due to higher OPTAVIA commission costs. Increased costs related to continued investments in IT and distribution and a rise in credit card fees are also a drag. On its fourth-quarter 2021 earnings call, management stated that it expects short-term margin pressure due to continued investments related to technology and supply-chain infrastructure.
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 currently has a Zacks Rank #3 and 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 some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Inter Parfums IPAR has an Earnings ESP of +11.02% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 85 cents per share, which suggests a decline of 2.3% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Celsius Holdings CELH has an Earnings ESP of +12.50% and a Zacks Rank #3. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Celsius Holdings’ revenues is pegged at $117.6 million, indicating growth of 135.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings is pegged at 3 cents per share, suggesting a rise of 200% from the year-ago quarter’s reported figure. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Hormel Foods HRL has an Earnings ESP of +1.29% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for Hormel Foods’ revenues is pegged at nearly $3 billion, indicating an increase of 15.1% from the year-ago quarter.
The Zacks Consensus Estimate for Hormel Foods’ quarterly earnings per share of 46 cents suggests a rise of 9.5% from the year-ago quarter’s reported figure. HRL has a trailing four-quarter earnings surprise of 1.7%, on average.
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