Medifast (MED) Tops Q4 EPS by 59c, Revenues Beat; Offers Q1 & FY20 EPS/Revenue Guidance Below Consensus

Medifast (NYSE: MED) reported Q4 EPS of $1.66, $0.59 better than the analyst estimate of $1.07. Revenue for the quarter came in at $170.6 million versus the consensus estimate of $161.69 million.

Fourth Quarter 2019 Highlights Compared to Prior-Year Period

• Revenue up 17.0% to $170.6 million
• 32.0% growth in active earning OPTAVIA Coaches to 31,800
• Net income increased 27.0% to $19.9 million
• Earnings per diluted share ("EPS") of $1.66, an increase of 27.7%
• Declared a quarterly cash dividend of $13.4 million, or $1.13 per share paid on February 6, 2020, an increase of over 50% compared to the prior-year period.

"We are pleased with our strong growth in revenue and active earning coaches during 2019 and are confident with our ability to drive continued gains in 2020 and beyond. We made excellent progress during the fourth quarter implementing our technology and supply chain upgrades, are seeing strong improvements in client satisfaction and are now better positioned to support our ongoing growth opportunities. With the recent operational challenges that temporarily muted the growth of active earning Coaches and clients largely behind us, we expect to see our growth rate improve as the year progresses," said Dan Chard, Chief Executive Officer of Medifast. "2019 was a transformative year where we laid the foundations for global expansion, built the systems and infrastructure to support significant future growth and we believe further demonstrated that our growth model is sustainable long-term. Our commitment to lifelong transformation one healthy habit at a time is unwavering across our organization. We are confident in our ability to produce long-term growth for our Stockholders and remain committed to making ongoing improvements to the Coach and Client experience in 2020 and beyond.

GUIDANCE:

Medifast sees Q1 2020 EPS of $1.35-$1.42, versus the consensus of $1.61. Medifast sees Q1 2020 revenue of $166-171 million, versus the consensus of $175.63 million.

Medifast sees FY2020 EPS of $6.25-$6.55, versus the consensus of $6.70. Medifast sees FY2020 revenue of $715-745 million, versus the consensus of $782.29 million.

• The Company expects first quarter revenue to be in the range of $166.0 million to $171.0 million and EPS to be in the range of $1.35 to $1.42. For the full year 2020, the Company expects revenue of $715.0 million to $745.0 million and EPS of $6.25 to $6.55. The full-year 2019 earnings guidance assumes a 22.5% to 23.5% effective tax rate.

For earnings history and earnings-related data on Medifast (MED) click here.

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