The 10-second takeaway
For the quarter ended March 31 (Q1), GNC Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins expanded.
GNC Holdings reported revenue of $664.7 million. The 10 analysts polled by S&P Capital IQ predicted net sales of $672.2 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $624.3 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 $0.73. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.73 for Q1 were 24% higher than the prior-year quarter's $0.59 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 38.5%, 10 basis points worse than the prior-year quarter. Operating margin was 18.7%, 70 basis points better than the prior-year quarter. Net margin was 10.9%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $673.7 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $2.66 billion. The average EPS estimate is $2.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 101 members out of 116 rating the stock outperform, and 15 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $47.63.
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