The 10-second takeaway
For the quarter ended March 31 (Q1), GNC Holdings Inc (NYSE:GNC) 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.
Revenue details
GNC Holdings Inc (NYSE:GNC) 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 details
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.
Margin details
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.)
Looking ahead
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.
Investor sentiment
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 Inc (NYSE:GNC) 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 Inc (NYSE:GNC) is outperform, with an average price target of $47.63.
The article GNC Holdings Hits Estimates in Solid Quarter originally appeared on Fool.com and is written by Seth Jayson.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.
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