Central Garden & Pet
The 10-second takeaway
For the quarter ended March 30 (Q2), Central Garden & Pet beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew.
Margins dropped across the board.
Central Garden & Pet tallied revenue of $498.2 million. The four analysts polled by S&P Capital IQ anticipated revenue of $493.2 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $466.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.46. The four earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.46 for Q2 were 2.2% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.7%, 90 basis points worse than the prior-year quarter. Operating margin was 9.4%, 30 basis points worse than the prior-year quarter. Net margin was 4.5%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $555.5 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $0.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 110 members out of 131 rating the stock outperform, and 21 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Central Garden & Pet a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Central Garden & Pet is outperform, with an average price target of $11.50.
Selling to fickle consumers is a tough business for Central Garden & Pet or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add Central Garden & Pet to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.