NYSE$MED

Medifast Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a decrease in revenue compared to the same quarter last year, but revenue and operating income exceeded expectations.

Medifast reported a revenue of $349.0 million for Q1 2023, a decrease of 16.4% compared to Q1 2022. EPS was $3.67, and net income was $40.0 million. The company's balance sheet remains strong with $123.7 million in cash and cash equivalents and no interest-bearing debt.

  • Revenue decreased by 16.4% to $349.0 million compared to the first quarter of 2022.
  • Earnings per diluted share (EPS) was $3.67.
  • Net income was $40.0 million.
  • The company expects second quarter 2023 revenue to be in the range of $250 million to $270 million and second quarter 2023 diluted EPS to be in the range of $1.32 to $1.44.

Headline financials

Total Revenue

$349M

Previous: $418M-16.4%
EPS (adj)

$3.67

Previous: $3.59+2.2%
Independent active earning coaches

58.7K

Previous: 63.9K-8.1%
Average revenue per active earning coach

$5.95K

Previous: $6.54K-9.0%
Capital Expenditures

-$2.12M

Previous: -$3.01M+29.7%
Free Cash Flow

$37.9M

Previous: $38.8M-2.4%
Net Income

$40M

Previous: $41.8M-4.3%
Operating Income

$53.5M

Previous: $55.1M-2.9%
Gross Profit

$246M

Previous: $302M-18.5%
Cash & Equivalents

$124M

Previous: $122M+1.3%
Total Assets

$322M

Previous: $421M-23.7%
Stock-Based Comp

$606K

Previous: $2.28M-73.4%

Revenue & EPS history

Medifast · Revenue · Quarterly

$349M

Q1 2023-16.4%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The company expects second quarter 2023 revenue to be in the range of $250 million to $270 million and second quarter 2023 diluted EPS to be in the range of $1.32 to $1.44. The second quarter 2023 earnings guidance assumes a 24.50% to 26.25% effective tax rate. The guidance includes the impact of investments being made for future growth initiatives, which are expected to continue throughout the year, impacting profitability.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+31.6%

Q4 2017

Best reaction

-29.9%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+19.7%+16.7%
Q4 2025-0.8%-1.9%-7.4%
Q3 2025+0.8%+0.4%-8.6%
Q1 2025-0.6%+5.3%+10.8%
Q4 2024-11.4%-8.4%-11.1%
Q3 2024+9.8%+3.1%+6.2%
Q2 2024-5.6%-9.0%-11.8%
Q1 2024-18.3%-20.8%-25.4%
Q4 2023-19.2%-18.5%-28.7%
Q3 2023-1.5%-6.5%+3.3%
Q2 2023-9.5%-4.9%-18.5%
Q1 2023-3.8%-0.7%-14.1%
Q4 2022-10.8%-4.6%-15.3%
Q3 2022-3.2%-1.6%+9.0%
Q2 2022-15.2%-21.9%-31.9%
Q1 2022+5.4%+1.8%-2.0%
Q4 2021-5.6%+1.7%-6.4%
Q3 2021+3.7%+4.7%-7.1%
Q2 2021-8.7%-14.1%-17.4%
Q1 2021+7.8%+18.9%+35.3%
Q4 2020-3.9%-0.8%-14.7%
Q3 2020+12.9%+23.5%+45.4%
Q2 2020-5.7%-5.0%-8.0%
Q1 2020+18.5%+30.1%+46.7%
Q4 2019-9.7%-13.4%-31.5%
Q3 2019-29.9%-24.8%-14.7%
Q2 2019-7.6%-7.8%-10.5%
Q1 2019-2.1%+3.6%-12.1%
Q4 2018+0.9%-0.7%+0.3%
Q3 2018-28.3%-25.3%-32.4%
Q2 2018+25.8%+17.4%+35.0%
Q1 2018+22.3%+19.3%+50.0%
Q4 2017+31.6%+32.5%+44.0%
Q3 2017+14.7%+13.1%+16.6%
Q2 2017+18.6%+20.7%+31.7%
Q1 2017+3.4%+3.8%-6.1%
Q4 2016-3.7%-4.4%-1.4%
Q3 2016-5.0%-4.5%-4.7%
Q2 2016-0.2%+0.8%+5.9%
Q1 2016+0.8%
Q4 2015-5.6%
Q3 2015+6.9%
Q2 2015-9.2%
Q1 2015+5.3%
Q4 2014-3.1%
Q3 2014+2.5%
Q2 2014-9.5%
Q1 2014-8.5%
Q4 2013+3.4%
Q3 2013+0.5%
Q2 2013-4.3%
Q1 2013-3.8%
Q4 2012-5.4%
Q3 2012+10.4%
Q2 2012+28.5%
Q1 2011+8.9%
Q1 2012+3.2%
Q4 2011+0.9%
Q4 2009+0.9%
Q3 2010+1.9%
Q3 2011+1.9%
Q4 2010+4.3%
Q2 2010+4.3%
Q2 2011+4.3%
Q1 2010+10.1%

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