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Factors Shaping Up Central Garden & Pet's (CENT) Q2 Earnings
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Central Garden & Pet Company (CENT - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 6, after the closing bell. The leading producer and distributor of lawn and garden products reported a positive earnings surprise of 33.3% in the preceding quarter.
The Zacks Consensus Estimate for second-quarter earnings has been stable over the last 30 days at 76 cents, suggesting an increase of 5.6% from the year-ago quarter’s tally. The consensus estimate for quarterly revenues is pegged at $693.2 million, which indicates growth of 2.9% from the year-ago quarter.
Key Factors to Note
Robust organic sales growth in the Garden and Pet segments as well as contributions from the C&S and Arden acquisitions has been driving the top line. Also, the company is steadily making strides in advancing its digital capabilities and optimizing supply chain. Moreover, in order to cushion margin performance, management has been focusing on lowering cost of goods sold. We note that the consensus estimate for second-quarter sales for the Garden and Pet segments is pegged at $346 million and $343 million, respectively, suggesting year-over-year growth of 3% and 1.5%.
Central Garden & Pet Company Price and EPS Surprise
However, Central Garden & Pet is witnessing higher SG&A expenses for a while. Any deleverage in the metric has a direct bearing on the company’s profitability.
What Our Zacks Model Says
Our proven model does not 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Central Garden & Pet carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Kroger (KR - Free Report) has an Earnings ESP of +11.89% and a Zacks Rank #2.
Casa Systems has an Earnings ESP of +25.00% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Factors Shaping Up Central Garden & Pet's (CENT) Q2 Earnings
Central Garden & Pet Company (CENT - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 6, after the closing bell. The leading producer and distributor of lawn and garden products reported a positive earnings surprise of 33.3% in the preceding quarter.
The Zacks Consensus Estimate for second-quarter earnings has been stable over the last 30 days at 76 cents, suggesting an increase of 5.6% from the year-ago quarter’s tally. The consensus estimate for quarterly revenues is pegged at $693.2 million, which indicates growth of 2.9% from the year-ago quarter.
Key Factors to Note
Robust organic sales growth in the Garden and Pet segments as well as contributions from the C&S and Arden acquisitions has been driving the top line. Also, the company is steadily making strides in advancing its digital capabilities and optimizing supply chain. Moreover, in order to cushion margin performance, management has been focusing on lowering cost of goods sold. We note that the consensus estimate for second-quarter sales for the Garden and Pet segments is pegged at $346 million and $343 million, respectively, suggesting year-over-year growth of 3% and 1.5%.
Central Garden & Pet Company Price and EPS Surprise
Central Garden & Pet Company price-eps-surprise | Central Garden & Pet Company Quote
However, Central Garden & Pet is witnessing higher SG&A expenses for a while. Any deleverage in the metric has a direct bearing on the company’s profitability.
What Our Zacks Model Says
Our proven model does not 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Central Garden & Pet carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:
BJ's Wholesale Club Holdings (BJ - Free Report) has an Earnings ESP of +8.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger (KR - Free Report) has an Earnings ESP of +11.89% and a Zacks Rank #2.
Casa Systems has an Earnings ESP of +25.00% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>