GNC Holdings, Inc. (GNC - Free Report) is scheduled to report second-quarter 2018 results on Jul 26, before the opening bell.
In the last reported quarter, the company posted a positive earnings surprise of 20%. Moreover, GNC Holdings delivered a positive earnings surprise in three of the trailing four quarters, with the average beat being 7%. Let's see how things are shaping up for this announcement.
Factors at Play
GNC Holdings' last reported quarter’s revenues dropped 7.2% primarily due to the sale of Lucky Vitamin in September 2017 and termination of the Gold Card program. Apart from sluggishness at the U.S. & Canada segments, declining revenues at the Manufacturing/Wholesale segment also resulted in this downside. With these factors still prevailing, we expect a similar trend in the second quarter of 2018 as well.
Moreover, GNC Holdings has a number of competitors in the market that include large international pharmacy chains, supermarket firms and big U.S.-based companies with global operations. Thus, we anticipate the company to slash product prices in the face of stiff competition, which in turn, might hurt margins.
GNC Holdings, Inc. Price and EPS Surprise
On the bright side, GNC Holdings’ international business has been a key growth driver in the recent years. Revenues at this segment increased 0.8% on higher cross-border e-commerce sales in China recorded in the first quarter.
Moving ahead strongly with focus on international expansion, GNC Holdings recently announced its plans to foray into Australia. To that end, the company has already entered into a master franchise agreement with Rapid Nutrition.
In March 2018, the company announced plans to expand its presence in India. In addition, the company has been targeting other channels like retailing, e-commerce and distribution for expansion.
Of late, the company has been experiencing solid growth in China. In this regard, last December, GNC Holdings announced plans of entering into a strategic partnership and joint-venture agreement with Harbin Pharmaceutical Group Holding Co., Ltd. Meanwhile, the company witnessed improving trends in Mexico, South Korea and Hong Kong.
Although immaterial for the to-be-reported quarter, the ongoing tension between United States and China regarding the imposition of tariffs on imports has raised concerns among major MedTech players, as any adverse move might affect the top-line numbers in the future.
Furthermore, the performance of One New GNC is improving gradually. Till now, more than 13 million consumers have joined the company's loyalty programs, including approximately 935,000 customers enrolled under the PRO Access membership since its launch in March 2017. Apart from this, management is working on product pricing and innovation. Meanwhile, new consumer enrolment under the myGNC Rewards Program buoys optimism.
Of late, GNC Holdings has progressed significantly through the e-commerce business. Per management, the e-commerce business continues to record more-than-expected growth. Moreover, the company is upbeat about the website’s shift of control from a third party to a cloud-based, company-controlled platform.
Notably, in the first quarter, GNC Holdings recorded a 27% rise in sales at GNC.com, including Amazon. The upside was led by solid contributions from the company’s marketplace in Amazon. This trend is likely to be reflected in the to-be-reported quarter as well.
Overall, the Zacks Consensus Estimate for total revenues of $623.3 million reflects a decrease of 2.8% from the year-ago figure.
What Our Model Suggests
Our proven model does not conclusively predict an earnings beat for GNC Holdings in the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GNC Holdings has a Zacks Rank #3 (Hold) and an Earnings ESP of -35.71%.
The Zacks Consensus Estimate for earnings of 14 cents reflects a 65.9% plunge on a year-over-year basis.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Align Technology, Inc. (ALGN - Free Report) sports a Zacks Rank #1 and has an Earnings ESP of +3.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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GNC Holdings, Inc. (GNC - Free Report) is scheduled to report second-quarter 2018 results on Jul 26, before the opening bell.
In the last reported quarter, the company posted a positive earnings surprise of 20%. Moreover, GNC Holdings delivered a positive earnings surprise in three of the trailing four quarters, with the average beat being 7%. Let's see how things are shaping up for this announcement.
Factors at Play
GNC Holdings' last reported quarter’s revenues dropped 7.2% primarily due to the sale of Lucky Vitamin in September 2017 and termination of the Gold Card program. Apart from sluggishness at the U.S. & Canada segments, declining revenues at the Manufacturing/Wholesale segment also resulted in this downside. With these factors still prevailing, we expect a similar trend in the second quarter of 2018 as well.
Moreover, GNC Holdings has a number of competitors in the market that include large international pharmacy chains, supermarket firms and big U.S.-based companies with global operations. Thus, we anticipate the company to slash product prices in the face of stiff competition, which in turn, might hurt margins.
GNC Holdings, Inc. Price and EPS Surprise
On the bright side, GNC Holdings’ international business has been a key growth driver in the recent years. Revenues at this segment increased 0.8% on higher cross-border e-commerce sales in China recorded in the first quarter.
Moving ahead strongly with focus on international expansion, GNC Holdings recently announced its plans to foray into Australia. To that end, the company has already entered into a master franchise agreement with Rapid Nutrition.
In March 2018, the company announced plans to expand its presence in India. In addition, the company has been targeting other channels like retailing, e-commerce and distribution for expansion.
Of late, the company has been experiencing solid growth in China. In this regard, last December, GNC Holdings announced plans of entering into a strategic partnership and joint-venture agreement with Harbin Pharmaceutical Group Holding Co., Ltd. Meanwhile, the company witnessed improving trends in Mexico, South Korea and Hong Kong.
Although immaterial for the to-be-reported quarter, the ongoing tension between United States and China regarding the imposition of tariffs on imports has raised concerns among major MedTech players, as any adverse move might affect the top-line numbers in the future.
Furthermore, the performance of One New GNC is improving gradually. Till now, more than 13 million consumers have joined the company's loyalty programs, including approximately 935,000 customers enrolled under the PRO Access membership since its launch in March 2017. Apart from this, management is working on product pricing and innovation. Meanwhile, new consumer enrolment under the myGNC Rewards Program buoys optimism.
Of late, GNC Holdings has progressed significantly through the e-commerce business. Per management, the e-commerce business continues to record more-than-expected growth. Moreover, the company is upbeat about the website’s shift of control from a third party to a cloud-based, company-controlled platform.
Notably, in the first quarter, GNC Holdings recorded a 27% rise in sales at GNC.com, including Amazon. The upside was led by solid contributions from the company’s marketplace in Amazon. This trend is likely to be reflected in the to-be-reported quarter as well.
Overall, the Zacks Consensus Estimate for total revenues of $623.3 million reflects a decrease of 2.8% from the year-ago figure.
What Our Model Suggests
Our proven model does not conclusively predict an earnings beat for GNC Holdings in the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GNC Holdings has a Zacks Rank #3 (Hold) and an Earnings ESP of -35.71%.
The Zacks Consensus Estimate for earnings of 14 cents reflects a 65.9% plunge on a year-over-year basis.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Align Technology, Inc. (ALGN - Free Report) sports a Zacks Rank #1 and has an Earnings ESP of +3.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter International Inc. (BAX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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