What Awaits Central Garden & Pet (CENT) in Q1 Earnings?
Central Garden & Pet Company CENT is set to report first-quarter fiscal 2023 results on Jan 31 after market close. The Zacks Consensus Estimate for revenues is pegged at $605.6 million, indicating a decline of 8.4% from the prior-year reported figure.
This producer and distributor of various products for the lawn and garden and pet supplies markets is expected to report a loss in the quarter under discussion. The Zacks Consensus Estimate for the quarter suggests a loss of 18 cents per share. The consensus estimate, which has been stable over the past 30 days, suggests a sharp decline from the year-ago earnings of 16 cents.
We expect Central Garden & Pet Company to generate revenues of $590.6 million, suggesting a decline of 10.7% year over year, and post a loss of 18 cents a share.
Central Garden & Pet Company has a trailing four-quarter earnings surprise of 321.2%, on average. In the last reported quarter, the bottom line of this Walnut Creek, CA-based company missed the Zacks Consensus Estimate by a wide margin of 233.3%.
Key Factors to Note
Softness in the garden segment, persistent inflation, changing consumer behavior and unfavorable retailer inventory dynamics have been acting as deterrents for Central Garden & Pet Company. For the first quarter of fiscal 2023, management estimates a loss of 15 cents to 20 cents per share against earnings of 16 cents reported in the prior-year period. This implies soft sales and higher-cost inventories.
Our estimate showcases a decline of 9% to $205.1 million in the Garden segment and a decrease of 11.6% to $385.5 million in the Pet segment for the quarter under discussion.
Despite the aforementioned headwinds, we believe that the company’s Central to Home strategy, strategic investments in digital marketing, customer insights and brand building might have provided some cushion. The company has been expanding its manufacturing capacity, simplifying the portfolio and focusing on cost reduction.
Central Garden & Pet Company Price, Consensus and EPS Surprise
Central Garden & Pet Company price-consensus-eps-surprise-chart | Central Garden & Pet Company Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Central Garden & Pet Company this time. 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. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Central Garden & Pet Company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Arhaus ARHS currently has an Earnings ESP of +5.00% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 19 cents suggests an increase of 35.7% from the year-ago reported number.
Arhaus' top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $354.1 million, which suggests an increase of 48.7% from the prior-year quarter. ARHS has a trailing four-quarter earnings surprise of 112%, on average.
Costco COST currently has an Earnings ESP of +1.97% and a Zacks Rank #3. The company is likely to register a bottom-line improvement when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.21 suggests an improvement from $2.92 reported in the year-ago quarter.
Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $55.56 billion, which indicates an increase of 7.1% from the figure reported in the prior-year quarter. Costco has a trailing four-quarter earnings surprise of 3.7%, on average.
Performance Food Group Company PFGC currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 76 cents suggests an increase from the 57 cents reported in the year-ago quarter.
Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.91 billion, indicating an increase of 8.4% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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