Second Half Looks Strong Despite Higher Ad Spending Says Medifast CEO

Medifast finished the first quarter ahead of where it wanted to be and the weight loss company is now gearing up for a strong second half, says CEO Michael MacDonald. MacDonald is projecting $0.47 in earnings in the second quarter even though he anticipates his average advertising spend will be higher. Wall Street’s consensus estimate is for Medifast to earn $0.45 in its second quarter. MacDonald said the company is building its network of health coaches back after losing about 1,000 coaches last year. Furthermore, he expects continued growth in its 70 weight control centers where revenue increased 31% to $4.7 million in the first quarter from $3.6 million last year.

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