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Is Central Garden & Pet Co. (CENT) Part of Your Portfolio?
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Is Central Garden & Pet Company (CENT - Free Report) part of your portfolio? If not, then this is the right time to add the stock as it looks very promising. Moreover, the underlying factors are capable of carrying the momentum further. The stock sports a Zacks Rank #1 (Strong Buy) and has a long-term earnings growth rate of 10%, which highlight its inherent strength. We believe that Central Garden & Pet Co. offers a sound investment opportunity. Shares of the company have gained roughly 11% following its second-quarter fiscal 2016 results announced on May 4.
Central Garden & Pet Co. continued with its positive earnings surprise streak for the seventh consecutive quarter, as it reported second-quarter results, prompting management to raise its earnings outlook for fiscal 2016. Management stated that organic growth, accretive acquisitions such as that of the pet bedding business and divestment of non-strategic assets helped the company to enhance its portfolio, leading to an improved performance.
The company posted adjusted earnings of 65 cents a share that beat the Zacks Consensus Estimate of 59 cents and also surged 38.3% year over year. The better-than-expected results were driven by improved top-line performance and effective cost-containment efforts. Net sales advanced 8.8% year over year to $541.2 million. The top line also surpassed the Zacks Consensus Estimate of $528 million, thus helping the company mark its fourth successive quarter of revenue beat.
The company is revamping both its Pet and Garden segments, and also intends to have a balanced approach that encompasses an improvement in revenues and profits through operational efficiency. Management now envisions fiscal 2016 adjusted earnings to increase at least 49% to $1.10 per share or higher. Earlier, the company had projected a 35% rise in adjusted earnings per share to at least $1.00.
Following the impressive performance, the Zacks Consensus Estimate of $1.13 and $1.26 for fiscal 2016 and fiscal 2017 has increased 5 cents and 8 cents, respectively, over the past 30 days. Rising estimates clearly indicate analysts’ optimism about the stock’s future performance.
Some other favorably stocks in the retail sector include Delta Apparel Inc. (DLA - Free Report) , sporting a Zacks Rank #1, and The Children's Place, Inc. (PLCE - Free Report) and Carter's, Inc. (CRI - Free Report) , both holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Is Central Garden & Pet Co. (CENT) Part of Your Portfolio?
Is Central Garden & Pet Company (CENT - Free Report) part of your portfolio? If not, then this is the right time to add the stock as it looks very promising. Moreover, the underlying factors are capable of carrying the momentum further. The stock sports a Zacks Rank #1 (Strong Buy) and has a long-term earnings growth rate of 10%, which highlight its inherent strength. We believe that Central Garden & Pet Co. offers a sound investment opportunity. Shares of the company have gained roughly 11% following its second-quarter fiscal 2016 results announced on May 4.
Central Garden & Pet Co. continued with its positive earnings surprise streak for the seventh consecutive quarter, as it reported second-quarter results, prompting management to raise its earnings outlook for fiscal 2016. Management stated that organic growth, accretive acquisitions such as that of the pet bedding business and divestment of non-strategic assets helped the company to enhance its portfolio, leading to an improved performance.
The company posted adjusted earnings of 65 cents a share that beat the Zacks Consensus Estimate of 59 cents and also surged 38.3% year over year. The better-than-expected results were driven by improved top-line performance and effective cost-containment efforts. Net sales advanced 8.8% year over year to $541.2 million. The top line also surpassed the Zacks Consensus Estimate of $528 million, thus helping the company mark its fourth successive quarter of revenue beat.
The company is revamping both its Pet and Garden segments, and also intends to have a balanced approach that encompasses an improvement in revenues and profits through operational efficiency. Management now envisions fiscal 2016 adjusted earnings to increase at least 49% to $1.10 per share or higher. Earlier, the company had projected a 35% rise in adjusted earnings per share to at least $1.00.
Following the impressive performance, the Zacks Consensus Estimate of $1.13 and $1.26 for fiscal 2016 and fiscal 2017 has increased 5 cents and 8 cents, respectively, over the past 30 days. Rising estimates clearly indicate analysts’ optimism about the stock’s future performance.
CENTRAL GARDEN Price, Consensus and EPS Surprise
CENTRAL GARDEN Price, Consensus and EPS Surprise | CENTRAL GARDEN Quote
Other Stocks to Consider
Some other favorably stocks in the retail sector include Delta Apparel Inc. (DLA - Free Report) , sporting a Zacks Rank #1, and The Children's Place, Inc. (PLCE - Free Report) and Carter's, Inc. (CRI - Free Report) , both holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>