Pet company Central Garden & Pet (NASDAQ:CENT) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
Central Garden & Pet met analysts’ revenue expectations last quarter, reporting revenues of $996.3 million, down 2.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but full-year EPS guidance missing analysts’ expectations.
Is Central Garden & Pet a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Central Garden & Pet’s revenue to decline 5.2% year on year to $711.2 million, a reversal from the 6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 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 three times over the last two years.
Looking at Central Garden & Pet’s peers in the household products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Clorox delivered year-on-year revenue growth of 27.1%, beating analysts’ expectations by 7.6%, and Church & Dwight reported revenues up 3.8%, topping estimates by 1%. Clorox traded up 1.2% following the results while Church & Dwight was also up 3.1%.
Read our full analysis of Clorox’s results here and Church & Dwight’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 3.8% on average over the last month. Central Garden & Pet is up 12.9% during the same time and is heading into earnings with an average analyst price target of $42 (compared to the current share price of $38.68).
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