Medifast Reports Blowout Earnings!

October 30, 2009

Just a few short days ago, I posted an article singing the praises of Medifast Inc. (MED). If you remember, this is the doctor-approved, weight-loss option of choice for thousands of people.

Not only does the product seem to be a winner, the company and stock have been phenomenal as well. In fact, I ran the numbers, took a hard look at the company and tossed aside analysts' earnings estimates of 19 cents per share. This company has been growing at an incredible pace, and I targeted 21 cents per share.

Well, I was closer than the analysts, but even my estimate was conservative. MED reported earnings of 23 cents per share for a 21% surprise!

The company reported third-quarter net income of $3.4 million or 23 cents a share, 21% better than the consensus and a 109% increase over the same period last year! Medifast also reported a 65% increase in revenue to $45 million compared with a year ago thanks to high demand for its safe weight-loss options. Shares surged over 17% yesterday alone thanks to MED’s solid quarterly performance.

This was a great move for the company, and I hope you had a chance to get in on this stock, but if not, MED is still a great company with a bright future ahead and should continue to reward investors in the quarters to come. 

Please remember that if you want to check on the health of any company, including MED, you can get the complete Stock Report FREE through Portfolio Grader.