NYSE$MED

Medifast Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Medifast's third quarter results were announced, revealing a decrease in revenue and earnings per share compared to the same period last year, alongside a decline in active earning OPTAVIA Coaches.

Medifast reported a decrease in revenue to $235.9 million, a net income of $23.1 million, and an EPS of $2.12 for the third quarter of 2023. The company faced challenges with a decline in active earning OPTAVIA Coaches and their productivity, but is adapting its business model to address the evolving health and wellness market.

  • Revenue decreased by 39.6% to $235.9 million compared to Q3 2022.
  • Net income was $23.1 million, or $2.12 per diluted share, a decrease from $36.2 million, or $3.27 per diluted share in Q3 2022.
  • The number of active earning OPTAVIA Coaches decreased by 28.9% to 47,100.
  • The company expects full-year 2023 revenue to be in the range of $1,050 million to $1,070 million and full-year 2023 diluted EPS to be in the range of $8.65 to $9.55.

Headline financials

Total Revenue

$236M

Previous: $390M-39.6%
EPS (adj)

$2.12

Previous: $3.32-36.1%
Independent active earning coaches

47.1K

Previous: 66.2K-28.9%
Average revenue per active earning coach

$5.01K

Previous: $5.9K-15.1%
Capital Expenditures

-$5.54M

Previous: -$7.62M+27.3%
Free Cash Flow

$17.6M

Previous: $28.5M-38.3%
Net Income

$23.1M

Previous: $36.2M-36.0%
Operating Income

$25.5M

Previous: $48.2M-47.0%
Gross Profit

$177M

Previous: $283M-37.3%
Cash & Equivalents

$113M

Previous: $69.7M+61.7%
Total Assets

$320M

Previous: $326M-1.9%
R&D Expense

$1.3M

No prior period
Stock-Based Comp

$2.68M

Previous: $2.96M-9.7%

Revenue & EPS history

Medifast · Revenue · Quarterly

$236M

Q3 2023-39.6%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The company expects full-year 2023 revenue to be in the range of $1,050 million to $1,070 million and full-year 2023 diluted EPS to be in the range of $8.65 to $9.55. The full-year 2023 earnings guidance assumes a 20.5% to 21.5% 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 Q3 2023

Historical avgQ3 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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