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Why Medifast (MED) stock is trading up today
Medifast reported third quarter sales that beat Wall Street expectations. The company posted adjusted EBITDA excluding interest income of $1.9 million, up from $1.7 million a year earlier. Its chief executive said Medifast is on track to deliver a fourth-quarter profit.
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What happened
Medifast reported third quarter sales that beat Wall Street expectations. The company posted adjusted EBITDA excluding interest income of $1.9 million, up from $1.7 million a year earlier. Its chief executive said Medifast is on track to deliver a fourth-quarter profit.
Confirmed
Global impact / market context
A sales beat and higher adjusted EBITDA, which means earnings before interest, taxes, depreciation and amortization, suggest Medifast's core business is stabilizing. The CEO also said the company expects a fourth-quarter profit, a sign costs and revenue may be coming into better balance.
Analyst inference
Medifast stock is volatile, with 10 moves greater than 5% in the past year. The 6.2% gain suggests investors see the results as meaningful but not enough to fundamentally change how they view the business.
Analyst inference
What to watch
- Fourth-quarter revenue is guided to $55 million to $75 million, with earnings from breakeven to 25 cents a share, figures investors can compare against actual results. Confirmed
- Watch whether the Trilivy brand, Reset Fuelings, the new compensation plan and Coach Hub bring in more sales, since the CEO said these offerings are now in the market. Proposed
- Track whether Medifast reaches its stated goal of a fourth-quarter profit; missing it could undercut the view that its business is stabilizing. Analyst inference