Central Garden & Pet Company (CENT) Lined Up for Q1 Earnings
Central Garden & Pet Company CENT is set to report first-quarter fiscal 2024 results on Feb 7 after market close. The Zacks Consensus Estimate for revenues is pegged at $620.1 million, indicating a decline of 1.2% from the prior-year reported figure.
The bottom line of this producer and distributor of various products for the lawn and garden and pet supplies markets is also expected to have declined year over year. Over the past 30 days, the Zacks Consensus Estimate for the first-quarter loss, currently pegged at 18 cents, has remained stable. The figure suggests that the loss has widened from a loss of 16 cents reported in the prior-year period.
Central Garden & Pet Company has a trailing four-quarter earnings surprise of 14.2%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 25%.
Key Factors to Note
Central Garden & Pet Company confronts deflationary pressures in certain commodity businesses, navigating changes in consumer behavior and grappling with unfavorable retailer inventory dynamics against a backdrop of macroeconomic and geopolitical uncertainty. The softening trend in pet adoptions appears to have influenced the company's top-line performance. Our projections indicate an anticipated 2.1% year-over-year decline in net sales for the Pet segment.
Nonetheless, Central Garden & Pet Company has been taking steps to strengthen its footing in the pet supplies and lawn and garden supplies space. It has been developing new products, advancing digital capabilities, streamlining the portfolio and improving the cost structure. Investments in capacity expansion and automation underscore the commitment to meet evolving demand dynamics.
Despite the headwinds, the Garden segment has demonstrated resilience by growing market share in crucial categories. Categories such as grass seed and wild bird have experienced positive momentum, showcasing the company's ability to gain traction in anchor categories. We expect sales in the Garden segment to increase 1.2% year over year.
Central Garden & Pet's ongoing Cost and Simplicity program, aimed at reducing costs and optimizing operations, has seen progress. Facility closures and portfolio optimization initiatives have been implemented, positioning the company for enhanced efficiency gains.
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.
Central Garden & Pet Company has an Earnings ESP of +6.85% but a Zacks Rank #4 (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:
Costco COST currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.56 suggests a rise of 7.9% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $58.81 billion, which calls for an increase of 6.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ross Stores ROST currently has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.62 suggests an increase of 23.7% from the year-ago quarter.
Ross Stores’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $5.75 billion, indicating an increase of 10.2% from the figure reported in the year-ago quarter. ROST has a trailing four-quarter earnings surprise of 7.8%, on average.
Ulta Beauty ULTA currently has an Earnings ESP of +0.97% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $7.48 suggests an increase of 12% from the year-ago reported number.
Ulta Beauty’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.51 billion, which suggests an increase of 8.9% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 5.8%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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Central Garden & Pet Company (CENT) : Free Stock Analysis Report
