NYSE$MED

Medifast Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Medifast reported solid results in Q2 2022, with revenue increasing by 15% and active earning OPTAVIA Coaches growing by almost 15%.

Medifast's Q2 2022 revenue increased by 15.0% to $453.3 million, driven by a 14.9% increase in active earning OPTAVIA Coaches to 68,000. Revenue per coach slightly increased. Net income decreased by 16.7% to $39.1 million, and EPS decreased by 13.6% to $3.42. The company has updated its full-year 2022 revenue guidance to $1.58 billion to $1.66 billion.

  • Revenue increased by 15.0% to $453.3 million.
  • The number of independent active earning OPTAVIA Coaches grew by 14.9% to 68,000.
  • Revenue per active earning OPTAVIA Coach was $6,667, a slight increase above the prior year.
  • Net income decreased by 16.7% to $39.1 million.

Headline financials

Total Revenue

$453M

Previous: $394M+15.0%
EPS (adj)

$3.87

Previous: $3.96-2.3%
Independent active earning coaches

68.0K

Previous: 59.2K+14.9%
Average revenue per active earning coach

$6.67K

Previous: $6.66K+0.1%
Capital Expenditures

-$5.85M

Previous: -$12.2M+52.0%
Free Cash Flow

$33.3M

Previous: $34.8M-4.3%
Net Income

$39.1M

Previous: $47M-16.7%
Operating Income

$49M

Previous: $61.4M-20.3%
Gross Profit

$322M

Previous: $294M+9.5%
Cash & Equivalents

$61.1M

Previous: $197M-69.1%
Total Assets

$341M

Previous: $364M-6.5%
Stock-Based Comp

$2.87M

Previous: $2.15M+33.5%

Revenue & EPS history

Medifast · Revenue · Quarterly

$453M

Q2 2022+15%vs Q2 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The Company expects full-year 2022 revenue to be in the range of $1.58 billion to $1.66 billion and full-year 2022 non-GAAP diluted EPS to be in the range of $12.70 to $14.10.

Headwinds

  • Macroeconomic factors such as inflation have impacted customer retention.
  • Consumer sentiment has impacted customer retention.
  • The decline in the Company’s outlook is due to macroeconomic factors.
  • The revised full-year 2022 earnings guidance assumes a 24.25% to 25.25% effective tax rate.

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 Q2 2022

Historical avgQ2 2022

+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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