Medifast, Inc. MED delivered solid third-quarter 2020 results, as both earnings and sales surged year over year and cruised past the respective Zacks Consensus Estimate. Strength in OPTAVIA was a major driver, with average revenue per active earning OPTAVIA coach increasing both year over year and sequentially.Quarterly HighlightsThe company posted adjusted earnings of $2.91 per share, which surpassed the Zacks Consensus Estimate of $2.49. Moreover, the bottom line grew significantly from $1.32 reported in the year-ago period.MEDIFAST INC Price, Consensus and EPS Surprise MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC QuoteNet revenues of $271.5 million advanced 42.8% year over year and beat the Zacks Consensus Estimate of $246 million. Markedly, OPTAVIA-branded products formed 83% of consumable units sold in the quarter, up from 78% in the year-ago period. Incidentally, total active earning OPTAVIA coaches jumped 30.7% to 42,100.Further, average revenue per active earning OPTAVIA coach came in at $6,329, up from $5,715 in the same period last year. Also, the same grew 8.2% from the preceding quarter, marking the third straight quarter of sequential growth. Productivity was backed by a rise in the number of clients as well as elevated average client spend compared with the second quarter. Coach productivity improvement was a result of the company’s constant focus on developing tools and programs to increase efficiency of coaches. Also, the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options has been an upside. Gross profit jumped 42.7% to $142.9 million, while the gross margin remained flat year over year at 75.2%.Moving on, SG&A expenses increased from $122.7 million to $159.5 million in the quarter, mainly accountable to escalated OPTAVIA commission costs, stemming from higher OPTAVIA sales, and greater salaries and benefits. This was partly compensated by lower sales and marketing costs. As a percentage of revenues, adjusted SG&A expenses declined 580 basis points to 58.7%. Adjusted income from operations more than doubled from $20.3 million to $44.6 million, thanks to higher gross profit, partially offset by a rise in SG&A expenses. The respective margin expanded 570 bps to 16.4%.Other Financial UpdatesThe company concluded the quarter with cash and cash equivalents of $156.5 million and total shareholders’ equity of roughly $140 million. Notably, management did not have any interest-bearing debt on its balance sheet as of Sep 30, 2020.Concurrently, management announced a quarterly cash dividend of $1.13 per share, which is payable on Nov 6, 2020. Additionally, it has roughly 2,323,000 shares remaining under its buyback plan. The company anticipates maintaining its quarterly dividend payment practice.Wrapping UpThe company’s programming initiatives, together with improvements to the organization, helped Medifast witness solid progress in the third quarter. The company remains committed to making further investments to improve its infrastructure in order to aid growth. Further, Medifast is well placed to encash on the opportunities arising from consumers’ rising inclination toward health and wellness in the United States as well as other parts of the world. Markedly, it is in a good shape to deliver well despite the challenges posed by the pandemic to consumer-oriented businesses. This Zacks Rank #3 (Hold) stock has gained 33.4% year to date against the industry’s decline of 8.8%.Looking for Solid Food Stocks? Check TheseGeneral Mills GIS, which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Lamb Weston LW has a Zacks Rank #2 and a long-term earnings growth rate of 7%.Flowers Foods FLO, which also carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 8.2%, on average.Legal Marijuana: An Investor’s DreamImagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027. Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Mills, Inc. (GIS): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report MEDIFAST INC (MED): Free Stock Analysis Report Lamb Weston Holdings Inc. (LW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research