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Will Central Garden & Pet (CENT) Disappoint on Q1 Earnings? - Analyst Blog

Zacks Equity Research
Updated

Central Garden & Pet Company (CENT), a leading name in the lawn, garden and pet supplies market, is slated to report its first-quarter fiscal 2015 results on Feb 3, 2015. In the last quarter, it delivered a positive surprise of 52.0%. Let’s see how things are shaping up for this announcement.

Factors Influencing this Quarter

Central Garden & Pet, despite being a leading name in the lawn, garden and pet supplies market, has been facing difficulties for some time now. Lower revenues from the Pet segment are its foremost concerns. It should also be noted that the company’s garden business is seasonal in nature and major sales occur in the second and third quarters. Moreover, stiff competition in the segment cannot be ignored. To mitigate its troubles, Central Garden & Pet intends to have a balanced approach that include revenue growth as well as cost reduction. How far the company has succeeded in its efforts remains to be seen in its first-quarter results.

Earnings Whispers?

Our proven model does not conclusively show that Central Garden & Pet is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Central Garden & Pet is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 22 cents.

Zacks Rank: Central Garden & Pet currently has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Bebe Stores, Inc. (BEBE) has an Earnings ESP of +50.00% and a Zacks Rank #1 (Strong Buy).

The Kroger Co. (KR) has an Earnings ESP of +2.27% and a Zacks Rank #2 (Buy).

Chipotle Mexican Grill, Inc. (CMG) has an Earnings ESP of +3.18% and a Zacks Rank #2.


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CHIPOTLE MEXICN (CMG): Free Stock Analysis Report
 
KROGER CO (KR): Free Stock Analysis Report
 
BEBE STORES INC (BEBE): Free Stock Analysis Report
 
CENTRAL GARDEN (CENT): Free Stock Analysis Report
 
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