The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GNC Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins increased across the board.
GNC Holdings reported revenue of $565.0 million. The nine analysts polled by S&P Capital IQ predicted revenue of $573.2 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $509.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. GAAP EPS of $0.47 for Q4 were 34% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 180 basis points better than the prior-year quarter. Operating margin was 15.5%, 170 basis points better than the prior-year quarter. Net margin was 8.4%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $674.0 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $2.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 99 members out of 112 rating the stock outperform, and 13 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give GNC Holdings a green thumbs-up, and two 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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