Wellness company Medifast (NYSE:) will report results tomorrow after market hours. This is what you can expect.
Medifast beat analysts’ revenue expectations by 3.7% last quarter, reporting revenue of $191 million, down 43.4% year over year. It was a weak quarter for the company, with revenue expectations for the following quarter falling short of analyst expectations.
Will Medifast result in a purchase or sale? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts expect Medifast’s revenue to decline 51.6% year-over-year to $168.9 million, a further slowdown from the 16.4% decline recorded in the same quarter last year. Adjusted earnings are expected to be $0.78 per share.
The majority of analysts covering the company have reaffirmed their estimates from the last thirty days, suggesting they expect the company to continue its trajectory on the earnings front. Medifast has a history of exceeding Wall Street expectations, beating revenue expectations by an average of 5.4% each time over the past two years.
Looking at Medifast’s peers in the consumer staples segment, some have already reported their first quarter results, which gives us an idea of what to expect. Colgate-Palmolive (NYSE:) delivered 6.2% year-over-year revenue growth, beating analyst expectations by 2.1%, and General Mills (NYSE:) reported flat sales, beating Wall Street consensus estimates by 2.7%. General Mills’ stock price was unchanged after the results.
Read the full analysis of Colgate-Palmolive and General Mills results on StockStory.
Inflation rose toward the Fed’s 2% target at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier road as the market shifts between optimism and pessimism around rate cuts due to mixed inflation data. While some consumer staples stocks have done slightly better, they have not been spared as share prices fell. 4.3% over the past month. Medifast fell 10.1% in the same period and is heading for gains with an average price target of $37.5 (compared to the share price of $33.71).
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