Medifast (MED) is up 32% at new all-time highs after the company blew out fourth quarter expectations and issued better than expected guidance for the first quarter and fiscal 2018.
Medifast offers comprehensive wellness products and programs that focus on creating sustainable change by helping people learn to incorporate healthy habits into their lives.
Fourth quarter revenue grew 25% to $78 million versus $71.4-74.4 million guidance. Earnings almost doubled year-over-year to $0.60/share versus $0.46-0.46 guidance.
Most of the copmany's revenue comes from OPTAVIA, a program designed to help people get and stay healthy. Fourth quarter OPTAVIA revenue increased 32.4% to $68.6 million. This is the ninth consecutive quarter of growth. The total number of active earning OPTAVIA Coaches for the fourth quarter of 2017 increased to 20% to 15,000. The average revenue per active earning OPTAVIA Coach for the fourth quarter of 2017 increased 9.7% to $4,562.
"Our financial results exceeded our expectations and we are pleased to report a strong finish to the year with revenue through our OPTAVIA Coaches model generating record growth," said Dan Chard, Medifast's Chief Executive Officer. "Looking ahead, our OPTAVIA coach community is now stronger than ever and very well-positioned to build upon the current business momentum as they share our mission of offering the world lifelong transformation, one healthy habit at a time."
Medifasts's outlook for the first quarter and fiscal 2018 were well above Wall Street's expectations. The company expects first quarter revenue to be in the range of $88.5 million to $91.5 million and earnings per diluted share to be in the range of $0.84 to $0.87. For the full year 2018, the Company expects revenue of $350 million to $360 million and earnings per diluted share of $3.15 to $3.25.
Medifast announced that Glenn Welling, Founder and Chief Investment Officer of Engaged Capital resigned from the Board of Directors. Medifast also announced the nomination to the Board of Directors of Michael Hoer, who has extensive business experience within the Asian market, having lived in Asia for nearly three decades, including Hong Kong and Singapore, two markets that will be core to Medifast's international expansion.
With today's big breakout to new highs, Medifast has a market capitalization of just over $1 billion and trades at ~28x earnings estimates.