Why GNC Shares Shriveled

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of health-supplement retailer GNC Holdings (NYSE: GNC  ) fell as much as 13% today before closing down 3%, after the company reported quarterly earnings.

So what: Overall, the specialty retailer had a good quarter, beating EPS estimates by $0.03, matching revenue expectations, and raising its guidance. Revenues grew 15% to $622 million, with strong same-store sales at domestic company-owned locations, and adjusted EPS up 32.6%. GNC also announced it was expanding its Gold Card Member Pricing program to four new markets after a successful pilot program tests. The program offers members variable everyday pricing discounts.

Now what: It's odd to see shares decline after an otherwise strong earnings report, although it happens on occasion. Usually, it's an indication of other reasons that the market fears the stock. In this case, investors could be worried about recent allegations from the FDA that Monster Beverage (Nasdaq: MNST  ) drinks have been responsible for some deaths, or even the negative light shined on fitness supplements as a result of Lance Armstrong's fall from grace. Despite the slight pullback, investors seem to have no reason to fear here, because GNC's strong growth seems likely to continue.

Want to get your regular fill of GNC?

Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Monster Beverage. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2090209, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:01:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
GNC $20.84 Down -0.76 -3.52%
GNC Holdings CAPS Rating: ***
MNST $147.26 Up +0.65 +0.44%
Monster Beverage CAPS Rating: ***