GNC Holdings
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.
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