Pet company Central Garden & Pet (NASDAQGS:CENT) will be reporting earnings. Here's what to look for.
Last quarter Central Garden & Pet reported revenues of $1.02 billion, flat year on year, missing analyst expectations by 0.2%. It was a mixed quarter for the company, with a beat of analysts' earnings estimates but a miss of analysts' revenue estimates.
Is Central Garden & Pet buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting Central Garden & Pet's revenue to grow 3.9% year on year to $735.1 million, improving on the 4.3% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Central Garden & Pet's peers in the household products segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. WD-40 delivered top-line growth of 7.7% year on year, beating analyst estimates by 1.6% and Colgate-Palmolive reported revenues up 10.3% year on year, exceeding estimates by 2.1%. Both stocks (WD-40 and Colgate-Palmolive) traded flat on the results.
There has been positive sentiment among investors in the household products segment, with the stocks up on average 3.4% over the last month. Central Garden & Pet is up 1% during the same time, and is heading into the earnings with analyst price target of $49, compared to share price of $44.3.
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The author has no position in any of the stocks mentioned.