Medifast Reports Record Q2 Earnings of $30.3 Million
August 12, 2023
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Medifast ($NYSE:MED) Inc. is a leading provider of healthy lifestyle change programs and products. Medifast’s program allows individuals to customize their program based on their personal goals and lifestyle. On Monday, Medifast Inc. reported that their earnings for the second quarter were $30.3 million, setting a record for the company. This increase is attributed to the company’s continued focus on expanding its digital and retail footprint and its successful execution of an accelerated growth strategy.
The strong results are a testament to Medifast’s commitment to providing customers with healthy lifestyle options and remain competitive in the weight-loss market. These numbers reflect the success of the company’s focus on providing innovative products and services to meet the needs of their customers worldwide. The company continues to strive to find new ways to support their customers and expand their reach.
Earnings
The latest earnings report of MEDIFAST for FY2023 Q2 ending June 30 2021 revealed a record-breaking $30.3 million in net income. This marks a 20.1% increase from the previous year, with total revenue reaching $394.19 million. Although this is a 13.0% decrease from the previous year, MEDIFAST’s total revenue has increased from $296.19 million in the last three years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Medifast. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 132.92 | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Medifast. More…
| Operations | Investing | Financing |
| 214.34 | -14.69 | -113.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Medifast. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 318.73 | 133.16 | 17.04 |
Key Ratios Snapshot
Some of the financial key ratios for Medifast are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.8% | 24.1% | 12.6% |
| FCF Margin | ROE | ROA |
| 14.5% | 60.7% | 33.9% |
Stock Price
On Tuesday, MEDIFAST, a leader in the health and wellness sector, reported record second-quarter earnings of $30.3 million. Despite the positive financial news, MEDIFAST’s stock price opened at $100.0 and closed at $89.4, which was a 6.9% drop from its prior closing price of 96.1. The cause of the drop in stock price is not yet clear, but it may be due to some investors taking profits off the table. Live Quote…
Analysis
GoodWhale recently conducted an analysis on MEDIFAST‘s wellbeing. We looked at many different factors to build a picture of the company’s health, with the Star Chart giving us a 10/10 score. This score is based on the company’s cashflows and debt, their ability to pay off debt and fund future operations, their strong asset and dividend growth, and their excellent profitability. Based on this analysis, we classified MEDIFAST as a ‘Rhino’ company. This means that the company has achieved moderate revenue or earnings growth. Companies like MEDIFAST may be attractive to investors looking for stable, reliable opportunities with potential for growth in the future. The combination of MEDIFAST’s strong financial health and their moderate revenue or earnings growth makes them an attractive option for many investors. More…
Peers
The company operates through four segments: Weight Management, Healthy Living, Professional Services, and Corporate. Medifast Inc has a wide range of competitors including Terminix Global Holdings Inc, WW International Inc, and Apiam Animal Health Ltd.
– Terminix Global Holdings Inc ($NASDAQ:WW)
Organifi is a wellness company that offers a line of nutritional supplements and other health-related products. The company was founded in 2013 and is headquartered in San Diego, California. Organifi’s products are sold online and through a network of independent distributors. The company’s flagship product is a green powder drink mix that contains a blend of superfoods, vitamins, and minerals. Organifi also sells protein powders, probiotics, and other health supplements.
As of 2022, Organifi had a market capitalization of $305.47 million and a return on equity of -20.95%. The company’s products are designed to improve overall health and wellness, and its flagship green powder drink mix is a popular choice among health-conscious consumers. While Organifi’s return on equity is negative, this is largely due to the company’s heavy investment in marketing and product development. Over the long term, Organifi should be able to generate strong profits as it grows its customer base and expands its product offerings.
– WW International Inc ($ASX:AHX)
Apiam Animal Health Ltd is a company that produces animal health products. Its market cap is 127.53M as of 2022 and its ROE is 4.91%. The company’s products include vaccines, antibiotics, and other health products for animals.
Summary
Medifast Inc. reported second quarter earnings of $30.3 million on Monday, yet the stock price moved down. Despite the initial reaction, investors should keep an eye on Medifast as there are a few interesting factors that could impact the performance of the stock over the next few months. The company’s recent partnerships with meal delivery services and grocery stores may help boost sales, and its cost-cutting initiatives could also help to increase profitability.
Additionally, the company continues to invest in research and development, which could lead to new products or services in the future. Overall, investors should do their own research and consider the risks and rewards associated with investing in Medifast.
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