For the second time this year, Medifast has raised its full-year guidance and shares have continued to spike following a profit growth of 86% in the second quarter, far surpassing sales expectations.
The Baltimore based dieting and wellness company reported a net income of $14.1 million, or $1.16 per share, in the second quarter compared to a net income of $7.6 million, or 63 cents per share in the year-ago quarter.
Medifast’s sales growth has continued to soar, rising 55%from $75.7 million in the second quarter last year to $117.3 million. In the first quarter of 2018 alone Medifast had a sales increase of 40%.
In after-market trading on Thursday Medifast shares were up 17% to $205. Medifast in on the NYSE and has been one of the fastest-growing stocks in the entire US this year, as company sales have gone up exponentially and its currently preparing for international expansion into Asia. Year-to-date, Medifast shares have surged over 150%.
Second quarter results surpassed Wall Street’s expectations. Analyst at Thomson Financial Network were polled and projected earning of $1 per share and sales of $103.8 million. Medifast itself had predicted revenue to be in the range of $99 million to $102 million and earnings per share to be in the range of 94 to 97 cents.
“We are pleased to report a further acceleration in the business momentum we reported in the first quarter of the year, resulting in record revenues and profitability that exceeded our expectations,” Medifast’s CEO Dan Chard said in a statement. “The accelerating rate is an indication of the energy behind our integrated coach model tied to our powerful mission and a repeatable business rhythm capable of delivering long-term sustainable growth.”
Chard went on to affirm that he remains confident that Medifast is “well positioned” for further future growth. Medifast raised their full year guidance, increasing sales expectations by almost 20% and they now expect a revenue between $460 million to $470 million and earnings per share in the range of $4.35 to $4.45.
They had previously projected revenue of $385 million to $395 million and earnings per share of $3.55 to $3.65.