Central Garden & Pet (CENT) Tops Q2 Earnings, Raises '17 View
Zacks Investment Research | May 03, 2017 11:05PM ET
Central Garden & Pet Company (NASDAQ:CENT) continued with its positive earnings surprise streak for the eleventh consecutive quarter, when it reported second-quarter fiscal 2017 results. The company posted adjusted earnings of 67 cents per share that beat the Zacks Consensus Estimate of 64 cents and also increased 3.1% year over year.
Organic growth, value accretive acquisitions such as that of the pet bedding business and Segrest along with divestment of non-strategic assets have been aiding the company to enhance portfolio, consequently resulting in improved performance.
Net sales of this leading producer of branded lawn & garden and pet supplies products grew 5.3% year over year to $569.9 million and coming marginally ahead of the Zacks Consensus Estimate of $566 million. Revenue growth was driven by the company’s recent Segrest acquisition.
Gross profit increased 8.4% to $183.5 million, while gross margin expanded 90 basis points (bps) to 32.2%. Central Garden & Pet reported operating income of $63.9 million, compared with $59.4 million in the year-ago quarter. Operating margin expanded 20 bps to 11.2% in the quarter under review.
Following the results, not much movement was noticed in after-hours trading session. However, in the past one year, the stock has displayed a tremendous run in the index, soaring 88.6% compared with the Zacks categorized Zacks Investment Research
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