GNC (GNC) got here out with a quarterly lack of $0.07 per share versus the Zacks Consensus Estimate of a lack of $0.52. This compares to lack of $0.13 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 86.54%. 1 / 4 in the past, it was anticipated that this dietary complement retailer would publish a lack of $0.02 per share when it really produced a lack of $0.02, delivering no shock.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
GNC, which belongs to the Zacks Retail – Pharmacies and Drug Shops business, posted revenues of $470.35 million for the quarter ended December 2019, surpassing the Zacks Consensus Estimate by 1.06%. This compares to year-ago revenues of $547.86 million. The corporate has topped consensus income estimates simply as soon as over the past 4 quarters.
The sustainability of the inventory’s fast worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
GNC shares have misplaced about 84.1% because the starting of the yr versus the S&P 500’s decline of -30.8%.
What’s Subsequent for GNC?
Whereas GNC has underperformed the market to date this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis reveals a powerful correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a powerful observe report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for GNC was combined. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You may see the entire checklist of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is -$0.06 on $472.90 million in revenues for the approaching quarter and -$0.02 on $1.78 billion in revenues for the present fiscal yr.
Buyers ought to be aware of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as properly. By way of the Zacks Trade Rank, Retail – Pharmacies and Drug Shops is presently within the high 40% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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GNC Holdings, Inc. (GNC): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.