Medifast (MED) Q2 Earnings: What To Expect

Wellness company Medifast (NYSE:MED) will be reporting results tomorrow afternoon. Here's what to expect.

Medifast met analysts' revenue expectations last quarter, reporting revenues of $174.7 million, down 49.9% year on year. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and underwhelming earnings guidance for the next quarter.

Is Medifast a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Medifast's revenue to decline 41.2% year on year to $174.1 million, a further deceleration from the 34.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Medifast has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5% on average.

Looking at Medifast's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Herbalife's revenues decreased 2.5% year on year, missing analysts' expectations by 3.6%, and USANA reported a revenue decline of 10.6%, falling short of estimates by 3.7%. Herbalife traded down 8.5% following the results while USANA was also down 3.1%.

Read our full analysis of Herbalife's results here and USANA's results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 4% on average over the last month. Medifast is up 16% during the same time and is heading into earnings with an average analyst price target of $20.8 (compared to the current share price of $21.47).

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