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Central Garden & Pet Company CENT is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2021 numbers on Feb 3, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $555.6 million, which indicates an increase of almost 15% from the year-ago quarter’s reported figure. Markedly, the company witnessed top-line growth of 25% in the last reported quarter.
The Zacks Consensus Estimate for quarterly earnings is currently pegged at break-even, which indicates an improvement from a loss of 8 cents in the year-ago quarter. The consensus mark has been stable 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 174.2%.
Keys Aspects to Note
With more time being spent indoors amid the pandemic, individuals have been devoting time to take care of pets and indulging in gardening activities. The trend is likely to continue to be a boon for the company’s Pet and Garden segments. Markedly, the garden category is gaining from increases in distribution, controls, fertilizers and live plants. In the pet category, the company has been gaining from strength in dog treats and chews, distribution as well as small animal consumables and supplies. Growth in these segments is likely to have supported the company’s top line in the first quarter. The Zacks Consensus Estimate for fiscal first-quarter sales in the Pet and Garden segments is currently pegged at $407 million and $151 million, respectively, suggesting an increase of 15% and 17%.
Additionally, quarterly results are likely to have benefited from contributions and product expansions resulting from buyouts like C&S Products, Arden Companies and Bell Nursery amongst others. Apart from this, Central Garden & Pet has been gaining on its healthy commercial relations with big retailers like PetSmart, PETCO, Walmart, Home Depot and Lowe’s to name a few.
However, adverse impacts from inflationary pressures in key commodities as well as higher labor and freight costs on the bottom line cannot be ruled out.
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 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 currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%.
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.
Tapestry, Inc. TPR currently has an Earnings ESP of +4.53% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SnapOn Incorporated SNA currently has an Earnings ESP of +1.21% and a Zacks Rank #2.
Guess?, Inc. GES has an Earnings ESP of +2.91% and a Zacks Rank #3, at present
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