GNC Holdings, Inc.
by Michael VodickaNovember 14, 2011 | Comments : 0 Recommended this article: (0)
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GNC Holdings, Inc. operates as a specialty retailer of health and wellness products in the United States and 48 other countries globally and has a market cap of $2.83 billion.
With earnings season sweeping across the Street, we got an update on GNC's business on October 21 with strong Q3 results that came in well ahead of expectations.
Revenue for the period was up 16% from last year to $538 million. Earnings also came in strong at 46 cents, 28% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 25% over the last two quarters.
The good results were driven by strong company-owned, domestic same-store sales, up 10.3% from last year for its 25th consecutive quarter of same-store sales growth.
GNC also saw strong results from franchising and manufacturing, with revenue up 23% and 18% respectively from last year.
We saw some solid movement in estimates off the good quarter, with the current year adding 10% to $1.46 while the next-year estimate tacked on 9% to $1.70, a bullish 16% growth projection.
But in spite of recent gains, GNC's PEG ratio of 1.12 is only a small premium to the benchmark of 1 for value.
On the chart, GNC had a great October, with shares jumping into a new all-time high on the strong market and good quarter. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
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