GNC Holdings Inc Earnings: Here’s Why Investors are Excited Now

GNC Holdings Inc (NYSE:GNC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.5%.

GNC Holdings Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.50 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 10.87% to $565 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GNC Holdings Inc reported adjusted EPS income of $0.50 per share. By that measure, the company beat the mean analyst estimate of $0.46. It missed the average revenue estimate of $573.95 million.

Quoting Management: “2012 was a year of tremendous execution and financial performance across every segment of the business. We expanded our customer base, gained market share, improved operating margins, generated strong free cash flow and effectively returned capital to shareholders,” said Joe Fortunato, Chairman, President & CEO.

Key Stats (on next page)…

Revenue decreased 9.11% from $621.61 million in the previous quarter. EPS decreased 18.03% from $0.61 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.71 to a profit $0.72. For the current year, the average estimate is a profit of $2.29, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)