Send me real-time posts from this site at my email

Here's How Central Garden & Pet (CENT) Looks Before Q2 Earnings

Central Garden & Pet Company CENT is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2021 numbers on May 5, after the closing bell. The Zacks Consensus Estimate for its quarterly revenues is pegged at $874.8 million, which indicates an increase of above 24% from the year-ago figure. Markedly, the company witnessed top-line growth of 22.7% in the last reported quarter.

The Zacks Consensus Estimate for quarterly earnings is currently pegged at $1.08, which indicates an improvement of more than 38% from 78 cents in the year-ago quarter. Also, the consensus mark has moved up by 7 cents in the past 30 days. Notably, the company’s bottom line surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average earnings surprise being 221.2%.

Keys Aspects to Note

With more time being spent indoors amid the pandemic, individuals have been devoting time to take care of pets and indulge in gardening activities. The trend is likely to continue to benefit the company’s Pet and Garden segments. Markedly, these segments have been performing well and driving the overall top line. In the pet unit, the company has been gaining from strong sales of dog and cat, distribution and small animal supplies. The garden unit is benefiting from wild bird feed, grass seed, fertilizers and live plants categories.
 
Growth in these segments has most likely aided the company’s top line in the fiscal second quarter. The Zacks Consensus Estimate for fiscal second-quarter sales in the Pet and Garden segments is currently pegged at $401 million and $479 million, respectively, suggesting an increase of 11% and 40%.

Additionally, quarterly results are likely to reflect contributions and product expansions resulting from buyouts of Green Garden, Hopewell Nursery, C&S Products and Bell Nursery among others. Moreover, the acquisition of DoMyOwn.com, which is a fast-growing online retailer of professional-grade control products, has likely aided the company’s performance in the quarter under review. The company has also been developing new products, advancing digital capabilities, optimizing supply chain, and focusing on marketing activities.

However, escalated SG&A expenses raise concern. Higher investments related to capacity expansion, brand building and e-commerce, and a spike in labor and freight costs as well as key commodity prices might have weighed on the quarterly performance.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Central Garden & Pet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Central Garden & Pet Company Price and EPS Surprise

 

Central Garden & Pet Company price-eps-surprise | Central Garden & Pet Company Quote

Although Central Garden & Pet sports a Zacks Rank #1, its Earnings ESP of -7.12% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Ralph Lauren RL currently has an Earnings ESP of +6.25% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Funko FNKO currently has an Earnings ESP of +9.70% and a Zacks Rank #2.
 
Under Armour UAA currently has an Earnings ESP of +6.12% and a Zacks Rank #2.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ralph Lauren Corporation (RL): Free Stock Analysis Report
 
Central Garden & Pet Company (CENT): Free Stock Analysis Report
 
Under Armour, Inc. (UAA): Free Stock Analysis Report
 
Funko, Inc. (FNKO): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue