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Central Garden & Pet Company (CENT) Queued for Q2 Earnings

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Central Garden & Pet Company (CENT - Free Report) is set to report second-quarter fiscal 2024 results on May 8 after market close. The Zacks Consensus Estimate for revenues is pegged at $894.5 million, which indicates a decline of 1.6% from the prior-year reported figure. Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share, currently pegged at 83 cents, has risen by a couple of cents.

Central Garden & Pet Company has a trailing four-quarter earnings surprise of 37.8%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 105.6%.

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. Also, the softening trend in pet adoptions appears to have influenced the company's top-line performance. Our projections indicate a 4.5% 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 key categories. Categories such as Grass, Fertilizer and Insecticides have experienced positive momentum, showcasing the company's ability to gain traction in key categories. We expect sales in the Garden segment to increase about 1.5% 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.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Central Garden & Pet 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, which is the case here.

Central Garden & Pet currently has a Zacks Rank #2 and an Earnings ESP of +4.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

3 More Stocks With the Favorable Combination

Here are three more companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat this season:

The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. The company is likely to witness top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 billion, suggesting a rise of 4.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.74, calling for a decline of 7.4% from the year-ago quarter’s levels. HSY has a trailing four-quarter earnings surprise of 6.5%, on average.

Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank of 3. The company is likely to register top- and bottom-line increases when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.49 billion, indicating growth of 4.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings of 86 cents suggests a rise of 1.2% from the year-ago quarter’s levels. CHD has a trailing four-quarter earnings surprise of 9.7%, on average.

Coty (COTY - Free Report) currently has an Earnings ESP of +4.23% and a Zacks Rank #3. The company is expected to register top-line growth when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly revenues is pegged at $1.37 billion, which implies a jump of 6.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for COTY’s quarterly earnings has been stable at 6 cents in the past 30 days, which calls for a 68.4% decline from the year-ago quarter’s reported number. COTY delivered an earnings beat of 115.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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