Why GNC Shares Popped

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 fitness specialist GNC (NYSE: GNC  ) were getting pumped up today, gaining as much as 10% after reporting an impressive quarter.

So what: GNC was two out of three in its earnings report. The health supplement retailer beat earnings estimates by $0.04 cents, with a $0.50 EPS, but missed on revenue expectations. Sales increased 10.9% to $565 million, but that was still short of Wall Street's view at $573.6 million. Same-store sales at domestic locations increased 7.1%, and were up by 11.4% at franchise locations, both strong numbers. Guidance also topped the experts' projections as management sees EPS of $2.75-$2.80 in 2013. The consensus was at $2.72.

Now what: CEO Joe Fortunato touted the company's strong performance in 2012, noting improvements in market share and operating margins, and expanding the customer base. The increase in comparable sales is generally a good indicator of continuing growth, and the fifth quarter in a row that GNC has beaten estimates. The company appears to be firing on all cylinders, and I'd expect a strong 2013 from the retailer.

Don't miss your next dose of GNC. Add the company to your Watchlist by clicking right here.

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.

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: 2257409, ~/Articles/ArticleHandler.aspx, 3/26/2015 3:28:31 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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!