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Walmart Inc. (WMT) - $25 value - yours FREE >>
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Central Garden & Pet Company (CENT) - $25 value - yours FREE >>
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Central Garden & Pet Co. Looks Promising: Time to Invest?
Investors want their portfolio to have stocks with a track record of better-than-expected results, surging share price and sound fundamentals. Based on these, Central Garden & Pet Company (CENT - Free Report) looks pretty promising. Let’s delve a bit deeper.
The company is revamping both the Pet and Garden segments. It also intends to adopt a balanced approach that encompasses an improvement in revenues and profits through operational efficiency. The third quarter of fiscal 2016 marked the eighth consecutive quarter of a positive earnings surprise for the company.
Central Garden & Pet Company’s adjusted earnings of 48 cents a share in the last reported quarter beat the Zacks Consensus Estimate of 43 cents and surged 26.3% year over year. Management now envisions fiscal 2016 adjusted earnings to be $1.18 per share or higher, which reflects an increase of over 59% from the prior year. Net sales improved 12% to $514.5 million and surpassed the Zacks Consensus Estimate of $490.9 million, marking the fifth consecutive quarter of a revenue beat.
CENTRAL GARDEN Price, Consensus and EPS Surprise
CENTRAL GARDEN Price, Consensus and EPS Surprise | CENTRAL GARDEN Quote
We note that organic growth, value accretive acquisitions such as that of the pet bedding business and the divestment of non-strategic assets have been helping the company enhance its portfolio and aid its performance. Additionally, Central Garden & Pet Company intends to gain market share in the home centers, mass market, grocery, specialty pet store and other independent channels.
Being the leading producer of garden and pet supplies products in the U.S. with a diversified portfolio of brands has helped the company develop healthy commercial relationships with retails giants such as Wal-Mart Stores Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) .
The above analysis clearly indicates that Central Garden & Pet Company deserves a place in your portfolio.
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