Medifast Inc (NYSE: MED) rose following an earnings and sales beat. The company issued strong financial results and FY18 guidance.
The Baltimore-based manufacturer and distributor of, healthy living products and programs reported revenue of $301.6 million for the year. Net income was $27.7 million, while earnings per diluted share were $2.29.
Revenue in the Franchise Medifast Weight Control Centers decreased, primarily driven by fewer franchise centers in operation during the period combined with a decline in activity within the centers and a decrease in resellers.
The Company ended the quarter with 16 franchise centers and 18 reseller locations in operation compared to 37 franchise centers and 19 reseller locations at the end of the same period last year.
CEO Dan Chard declared, "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.
"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."
MED 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
Shares vaulted $23.27, or 34.5%, in $90.78, as the clock approached noon ET on Wednesday.