Medifast Q2 Earnings Anticipated to Decline Significantly: Analysts Project 120.7% EPS Drop and 39.6% Revenue Decline

Medifast (MED) is expected to report significant declines in Q2 earnings, with a 120.7% YoY EPS decrease and a 39.6% revenue drop. Analysts project an EPS of -$0.19 and revenue of $101.8 million. Despite the expected downturn, GuruFocus metrics indicate a potential upside based on current price targets and GF Value. The current consensus rating is a neutral "Hold" with a one-year price target of $15.00, implying a 9.09% upside from the current stock price.

Medifast (NYSE: MED) is scheduled to announce its Q2 2025 earnings results on Monday, August 4th, after market close. Analysts anticipate a substantial decline in earnings, with a consensus EPS estimate of -$0.19, representing a 120.7% year-over-year (YoY) decrease. Revenue is projected to fall by 39.6% YoY, with estimates at $101.8 million [1].

Historically, Medifast has demonstrated a strong track record of beating earnings estimates, with an 88% success rate over the past two years for both EPS and revenue. However, the latest estimates suggest a shift, with no upward revisions and one downward revision for EPS, and similarly for revenue [1].

The company's stock has been under pressure, with a recent price drop and a 12-month low of $11.57, indicating investor concerns over the expected earnings report. Despite the expected downturn, GuruFocus metrics suggest a potential upside, with a one-year price target of $15.00, implying a 9.09% increase from the current stock price [2].

Institutional investors, including hedge funds, have shown interest in Medifast, with significant changes in their positions in the first quarter. Strs Ohio, Amundi, and AQR Capital Management LLC have increased their stakes in the company, indicating a belief in its long-term potential despite the current earnings challenges [2].

Medifast's business model focuses on weight loss, weight management, and healthy living products, with a strong presence in the United States and Asia-Pacific. The company's brands include OPTAVIA, OPTAVIA ACTIVE, and Optimal Health, offering a wide range of products such as bars, puffs, cereal, and shakes [2].

In conclusion, Medifast's Q2 earnings report is expected to highlight significant declines in earnings and revenue. While the company has faced challenges in meeting analyst expectations, institutional investor interest and GuruFocus metrics suggest potential upside for the stock. Investors will be closely watching the earnings report for further insights into the company's financial health and future prospects.

References:
[1] https://seekingalpha.com/news/4476770-medifast-q2-2025-earnings-preview
[2] https://www.marketbeat.com/instant-alerts/medifast-med-expected-to-announce-quarterly-earnings-on-monday-2025-07-28/