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GNC Holdings Beats Up on Analysts Yet Again

By Seth Jayson - Updated Apr 7, 2017 at 12:00PM

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Just the facts, Fool.

GNC Holdings (NYSE: GNC) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), GNC Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.

Margins expanded across the board.

Revenue details
GNC Holdings reported revenue of $621.6 million. The nine analysts polled by S&P Capital IQ expected a top line of $618.2 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $538.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.61. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.58 per share. GAAP EPS of $0.60 for Q3 were 33% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.8%, 160 basis points better than the prior-year quarter. Operating margin was 18.0%, 250 basis points better than the prior-year quarter. Net margin was 10.0%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $573.8 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $2.43 billion. The average EPS estimate is $2.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 93 members out of 104 rating the stock outperform, and 11 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give GNC Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GNC Holdings is outperform, with an average price target of $45.88.

If you're invested in retailers like GNC Holdings, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

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