Medifast(US:MED) ZACKS·2025-02-19 18:05Core Insights - Medifast, Inc. reported a decline in both earnings and net revenues for the fourth quarter of 2024, but both metrics exceeded the Zacks Consensus Estimate [1][4][5] Financial Performance - Adjusted earnings per share (EPS) were 10 cents, down from $1.09 in the same quarter last year, surpassing the Zacks Consensus Estimate of an adjusted loss of 27 cents [4] - Net revenues totaled $119 million, a decrease of 37.7% year over year, attributed to fewer active earning OPTAVIA Coaches and reduced productivity per Coach, but exceeded the Zacks Consensus estimate of $111 million [5] - The average revenue per active earning OPTAVIA Coach was $4,391, down 5.5% from $4,648, with the total number of active earning Coaches falling 34.1% to 27,100 from 41,000 [5] Margin and Cost Analysis - Gross profit was $88.2 million, down 37.6% year over year, with a gross margin of 74.1%, which is an increase of 10 basis points year over year [7] - Adjusted selling, general and administrative expenses (SG&A) decreased by 30.1% year over year to $87.5 million, primarily due to reductions in coach compensation and nonrecurring costs [8] - Adjusted SG&A expenses as a percentage of revenues increased by 800 basis points to 73.5%, driven by higher marketing expenditures and reduced leverage on fixed expenses [9] Operational Insights - Adjusted income from operations declined 95.6% to $0.7 million, with the adjusted operating margin decreasing by 790 basis points year over year to 0.6% [10] - The company ended the quarter with cash, cash equivalents, and investments of $162.3 million, with no interest-bearing debt and total shareholders' equity of $210.1 million [11] Future Outlook - For the first quarter of 2025, Medifast expects revenues between $100 million and $120 million, with EPS ranging from a loss of 50 cents to break-even [12]