NYSE$MED

Medifast Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Medifast's second quarter results were announced, revealing a decrease in revenue due to a decline in active earning OPTAVIA Coaches and their productivity, while strategic initiatives aimed at efficiency and cost reduction helped mitigate the impact of economic headwinds.

Medifast reported a decrease in revenue for Q2 2023, driven by a decline in active OPTAVIA Coaches and their productivity. However, strategic initiatives focused on efficiency and cost reduction helped mitigate the impact of economic headwinds. The company is also advancing its health and wellness agenda with the launch of new products and pilot programs.

  • Revenue decreased by 34.7% to $296.2 million compared to Q2 2022, driven by a decrease in active earning OPTAVIA Coaches and their productivity.
  • The average revenue per active earning OPTAVIA Coach was $5,578, a 16.3% decline compared to $6,667 in Q2 2022.
  • Net income was $30.3 million, or $2.77 per diluted share, compared to $39.1 million, or $3.42 per diluted share, in Q2 2022.
  • Cash and cash equivalents totaled $147.4 million with no interest-bearing debt.

Headline financials

Total Revenue

$296M

Previous: $453M-34.7%
EPS (adj)

$2.77

Previous: $3.87-28.4%
Independent active earning coaches

53.1K

Previous: 68.0K-21.9%
Average revenue per active earning coach

$5.58K

Previous: $6.67K-16.3%
Capital Expenditures

-$3.86M

Previous: -$5.85M+34.0%
Free Cash Flow

$26.4M

Previous: $33.3M-20.6%
Net Income

$30.3M

Previous: $39.1M-22.6%
Operating Income

$38.7M

Previous: $49M-21.0%
Gross Profit

$211M

Previous: $322M-34.5%
Cash & Equivalents

$147M

Previous: $61.1M+141.4%
Total Assets

$319M

Previous: $341M-6.4%
Stock-Based Comp

$2.51M

Previous: $2.87M-12.3%

Revenue & EPS history

Medifast · Revenue · Quarterly

$296M

Q2 2023-34.7%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The Company expects third quarter 2023 revenue to be in the range of $220 million to $240 million and third quarter 2023 diluted EPS to be in the range of $0.71 to $1.32

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 2023

Historical avgQ2 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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