GNC Holdings Inc Earnings: Here’s Why Shares are Up Now

GNC Holdings Inc (NYSE:GNC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.89%.

GNC Holdings Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.74% to $0.73 in the quarter versus EPS of $0.62 in the year-earlier quarter.

Revenue: Rose 9.24% to $676.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GNC Holdings Inc reported adjusted EPS income of $0.73 per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $672.3 million.

Quoting Management: Joe Fortunato, Chairman, President & CEO, said, “GNC continues to consistently deliver strong year-over-year results, while making meaningful investments in the business. We had an exemplary execution of our transition to Member Pricing, our new products are delivering above expectations, and our web businesses are both growing the top and bottom line. Internationally, our commitment to increasing the penetration of GNC products – along with other efforts – continues as we seek to gain market share globally. And, we opened our first standalone store in China. We are well positioned for sustained long-term growth – capitalizing on our leadership position in the marketplace – and continue to execute a strong capital return to shareholder program.”

Key Stats (on next page)…

Revenue increased 1.75% from $664.69 million in the previous quarter. EPS decreased 0% from $0.73 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 $0.74 to a profit $0.75. For the current year, the average estimate is a profit of $2.8, 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)