NYSE$MED

Medifast Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Medifast experienced revenue growth and increased OPTAVIA coach engagement.

Medifast reported a strong third quarter with a 42.8% increase in revenue, driven by growth in active OPTAVIA Coaches and increased revenue per coach. Net income also saw a significant increase.

  • Revenue increased by 42.8% to $271.5 million.
  • Active earning OPTAVIA Coaches grew by 30.7% reaching 42,100.
  • Revenue per active earning OPTAVIA Coach increased 8.2% over the second quarter to $6,329.
  • Net income increased 116.7% to $34.5 million, with EPS of $2.91.

Headline financials

Total Revenue

$271M

Previous: $190M+42.8%
EPS (adj)

$2.91

Previous: $1.32+120.5%
Independent active earning coaches

42.1K

Previous: 32.2K+30.7%
Average revenue per active earning coach

$6.33K

Previous: $5.72K+10.7%
Capital Expenditures

-$3.85M

Previous: -$9.22M+58.2%
Free Cash Flow

$30.6M

Previous: $6.68M+358.2%
Net Income

$34.5M

Previous: $15.9M+116.7%
Operating Income

$44.6M

Previous: $20.3M+119.9%
Gross Profit

$204M

Previous: $143M+42.7%
Cash & Equivalents

$156M

Previous: $81.2M+92.7%
Total Assets

$261M

Previous: $199M+31.3%
Stock-Based Comp

$2.13M

Previous: $1.17M+81.7%

Revenue & EPS history

Medifast · Revenue · Quarterly

$271M

Q3 2020+42.8%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Medifast is confident in its ability to deliver long-term growth and will continue to focus on providing its Clients with the ability to achieve lifelong transformation one healthy habit at a time.

Tailwinds

  • The business continues to go from strength to strength.
  • High levels of client demand and engagement among independent OPTAVIA Coaches.
  • Accelerated growth and record levels of active earning Coaches.
  • Comprehensive solution is resonating with Coaches and Clients everywhere.
  • Investments to enhance infrastructure to support strong growth trajectory.

Headwinds

  • COVID-19 pandemic continues to deliver challenges and obstacles to consumer-facing businesses.
  • Impact of the COVID-19 pandemic on Medifast's results.
  • Severity, length and ultimate impact of COVID-19 on people and economies.
  • Medifast's inability to attract and retain independent OPTAVIA Coaches and Clients.
  • Increases in competition, litigation, regulatory changes, and Medifast's planned growth into new domestic and international markets and new channels of distribution.

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 Q3 2020

Historical avgQ3 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro