Pet company Central Garden & Pet (NASDAQ:CENT) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Central Garden & Pet beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $678.2 million, up 1.3% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Central Garden & Pet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Central Garden & Pet’s revenue to decline 4.8% year on year to $625 million, a reversal from the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Central Garden & Pet has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Central Garden & Pet’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Colgate-Palmolive delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 1.7%, and Procter & Gamble reported revenues up 1.5%, in line with consensus estimates. Colgate-Palmolive traded up 7.2% following the results while Procter & Gamble was also up 2.8%.
Read our full analysis of Colgate-Palmolive’s results here and Procter & Gamble’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 9.3% on average over the last month. Central Garden & Pet is up 6.4% during the same time and is heading into earnings with an average analyst price target of $46 (compared to the current share price of $34.49).
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