Medifast reports lower earnings and revenue for the fourth quarter

  • Medifast shares drop 16% after lower 4Q earnings
  • Quarterly earnings of $6 million, compared to $26.5 million last year
  • Revenue for the quarter was $191 million, compared to $337.2 million last year
  • Challenging market and lower revenue per active customer cited as reasons for decrease
  • First-quarter revenue expected to be between $155 million and $175 million

Medifast shares were down 16% on Wednesday to $41.28 after the company reported lower fourth-quarter earnings than the same quarter last year. The health and wellness company on Tuesday after market close reported quarterly earnings of $6 million, or 55 cents a share, compared with earnings of $26.5 million, or $2.41 a share, in the same quarter last year. Revenue for the quarter was $191 million, compared with last year’s $337.2 million. The company said revenue decreased due to a "challenging market" and lower revenue per active customer. Medifast expects to have first-quarter revenue of $155 million to $175 million, and earnings of 25 cents to 95 cents a share.

Factuality Level: 9
Factuality Justification: The article provides specific details about Medifast’s financial performance, including earnings, revenue, and projections. The information is clear and directly related to the main topic without any irrelevant details or bias. The article does not contain any misleading information or sensationalism, and it presents the facts objectively.
Noise Level: 3
Noise Justification: The article provides relevant information about Medifast’s financial performance, including details about the decrease in earnings and revenue. It stays on topic and supports its claims with specific numbers and figures. However, it lacks in-depth analysis, antifragility considerations, and accountability of the company’s decisions.
Financial Relevance: Yes
Financial Markets Impacted: Medifast shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the decrease in Medifast’s shares and lower earnings compared to the previous year. However, there is no mention of an extreme event or its impact.
Public Companies: Medifast (MED)
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