Why Is Medifast (MED) Stock Down 20% Today?


  • Medifast (MED) stock is dropping alongside its Q1 2024 earnings report.
  • The company’s EPS missed Wall Street’s estimates.
  • Its outlook for Q2 also doesn’t bode well for investors.
MED Stock - Why Is Medifast (MED) Stock Down 20% Today?

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Medifast (NYSE:MED) stock is falling on Tuesday after the weight loss company released its earnings report for the first quarter of 2024.

The bad news for MED stock comes from its adjusted earnings per share of 66 cents. That’s well below Wall Street’s estimate of 80 cents for the quarter and much worse than the $3.67 per share reported in the same period of the previous year.

Medifast also reported revenue of $174.74 million during Q1, which is better than the $173.45 million analysts were expecting. However, it’s still down from the $348.98 million reported in the first quarter of 2023.

Medifast chairman and CEO Dan Chard said the following in the earnings report:

“While 2024 will be a year of investment for future growth, we believe the initiatives we are undertaking will be foundational in creating a platform for sustained company growth in the years ahead.”

What’s Next for MED Stock?

Unfortunately, the company’s guidance for Q2 2024 isn’t stacking up to Wall Street’s expectations. This has its adjusted EPS and revenue outlook ranging from 5 cents to 40 cents and $150 million to $170 million. Wall Street’s estimates are for adjusted EPS of 67 cents and revenue of $175.1 million.

MED stock is down 20% as of Tuesday morning and was down 49.4% year-to-date when markets closed yesterday.

Investors will want to stick around for even more of the most recent stock market stories!

We have all of the hottest stock market news worth reading about on Tuesday! A few examples include what’s got shares of Greenwave Technology Solutions (NASDAQ:GWAV) and Cyclacel Pharmaceuticals (NASDAQ:CYCC) stock up today as well as the biggest pre-market stock movers this morning. You can find all of that info at the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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