How Central Garden & Pet (CENT) Looks Ahead Of Q1 Earnings
Zacks Investment Research | Jan 30, 2020 10:09PM ET
Central Garden & Pet Company (NASDAQ:CENT) is scheduled to release first-quarter fiscal 2020 results on Feb 5, after the closing bell. The leading producer and distributor of lawn and garden products reported a negative earnings surprise of 76.5% in the preceding quarter.
The Zacks Consensus Estimate for the quarter is pegged at a loss of 12 cents, suggesting deterioration from the year-ago earnings of 3 cents.
The consensus estimate for quarterly revenues is pegged at $472.3 million, which indicates growth of 2.2% from the year-ago quarter.
Key Factors to Note
In the last earnings call, Central Garden & Pet had informed that unfavorable timing of orders in the quarter, continued sluggishness in the animal health businesses and rising corporate expenses are likely to hurt the first-quarter fiscal 2020 bottom line. Moreover, the company has been witnessing a rise in SG&A expenses for a while on account of higher selling and delivery expenses as well as warehouse and administrative costs. We note that management had earlier projected loss of 10-15 cents per share for the first quarter.
Nonetheless, robust organic sales growth in the Garden and Pet segments as well as contributions from the C&S and Arden acquisitions has been boosting revenues for the company. Also, the company has been steadily making strides in advancing its digital capabilities and optimizing supply chain. Moreover, in order to cushion margin performance, management is focusing on lowering cost of goods sold.
Central Garden & Pet Company Price and EPS Surprise
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