The analyst firm reiterated its "hold" rating for the stock. GNC's lower second quarter estimates and industry slowdown are the cause of the lower price target according to Jefferies analysts.
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- GNC's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, GNC HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $123.13 million or 28.89% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.34%.
- GNC HOLDINGS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GNC HOLDINGS INC increased its bottom line by earning $2.72 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($3.06 versus $2.72).
- 39.78% is the gross profit margin for GNC HOLDINGS INC which we consider to be strong. Regardless of GNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GNC's net profit margin of 10.32% compares favorably to the industry average.
- You can view the full analysis from the report here: GNC Ratings Report