Insights into Central Garden & Pet's Upcoming Earnings

Central Garden & Pet CENT is gearing up to announce its quarterly earnings on Monday, 2024-11-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Central Garden & Pet will report an earnings per share (EPS) of $-0.20.

The announcement from Central Garden & Pet is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Past Earnings Performance

The company's EPS beat by $0.11 in the last quarter, leading to a 5.84% increase in the share price on the following day.

Here's a look at Central Garden & Pet's past performance and the resulting price change:

Performance of Central Garden & Pet Shares

Shares of Central Garden & Pet were trading at $38.36 as of November 21. Over the last 52-week period, shares are up 21.81%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Central Garden & Pet

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Central Garden & Pet.

A total of 2 analyst ratings have been received for Central Garden & Pet, with the consensus rating being Buy. The average one-year price target stands at $44.0, suggesting a potential 14.7% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Spectrum Brands Holdings, Energizer Hldgs and WD-40, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Spectrum Brands Holdings is favoring an Neutral trajectory, with an average 1-year price target of $94.0, suggesting a potential 145.05% upside.
• For Energizer Hldgs, analysts project an Neutral trajectory, with an average 1-year price target of $37.25, indicating a potential 2.89% downside.
• WD-40 is maintaining an Buy status according to analysts, with an average 1-year price target of $308.0, indicating a potential 702.92% upside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Spectrum Brands Holdings, Energizer Hldgs and WD-40, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Central Garden & Pet ranks at the top for Revenue Growth with a negative growth rate, indicating potential challenges. In terms of Gross Profit, it is at the top, showcasing strong profitability. However, its Return on Equity is at the bottom, suggesting lower returns for shareholders compared to peers. Overall, Central Garden & Pet's performance is mixed compared to its peers in the analysis.

Delving into Central Garden & Pet's Background

Central Garden & Pet Co understands that home is central to life and has nurtured happy and healthy homes for over forty years. The segments of the company are the pet segment and garden segment. The company's trusted products are dedicated to helping lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a portfolio of more than sixty-five brands including Pennington, Nylabone, Kaytee, Amdro, and Aqueon, manufacturing and distribution capabilities, and a passionate, entrepreneurial growth culture. Central Garden and Pet is based in Walnut Creek, California, and has offices across North America and Europe.

Central Garden & Pet: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Central Garden & Pet's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -2.63%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Central Garden & Pet's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 8.0%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Central Garden & Pet's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 5.14%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Central Garden & Pet's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 2.23%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Central Garden & Pet's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.87.

To track all earnings releases for Central Garden & Pet visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.