NEW YORK (TheStreet) -- Shares of GNC Holdings (GNC) - Get Report were falling 27.3% to $28.08 with heavy trading volume on Thursday after the vitamin and supplement retailer missed analysts' estimates for earnings in the third quarter and provided a light 2015 earnings forecast.
GNC reported earnings of 76 cents a share for the third quarter, below analysts' estimates of 83 cents a share for the quarter. Revenue grew 2.4% from the year-ago quarter to $672.24 million for the quarter, missing analysts' estimates of $684.44 million.
"While our performance in the third quarter did not meet our short-term expectations, many of the initiatives have shown success relative to our long-term goals, consistent with our strategic evolution," CEO Mike Archbold said in a statement. "We have seen, among other things, improvements in sales from critical customer segments and excellent returns on our investments in expanded assortments."
The company said it now expects to report earnings of $2.85 a share to $2.90 a share for full year 2015. Analysts expect GNC to report earnings of $3.05 a share for the full year.
About 14.6 million shares of GNC were traded by 12:51 p.m. Thursday, well above the company's average trading volume of about 1.6 million shares a day.
TheStreet Ratings team rates GNC HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate GNC HOLDINGS INC (GNC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: GNC
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