Will Central Garden (CENT) Disappoint this Earnings Season? - Analyst Blog
May 05 2014 - 2:00PM
Zacks
Central Garden & Pet
Company (CENT), a leading name in the lawn, garden and pet
supplies markets, is set to report its second-quarter fiscal 2014
results on May 6, 2014. Last quarter, it posted a positive surprise
of 16.1%. Let us see how things are developing for this
announcement.
Growth factors in the past quarter
Central Garden & Pet’s first-quarter fiscal 2014 results
benefited from the management’s overhauling initiatives. The
company is building on a balanced approach that encompasses revenue
growth as well as cost reduction. Also, the focus on product
innovation and improvement in customer relations helped it to post
a narrower-than-expected loss.
Earnings Whispers
Our proven model does not conclusively project Central Garden &
Pet as likely to beat earnings this quarter. That is because a
stock needs to have both a positive Earnings ESP and a Zacks Rank
#1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is
not the case here as you will see below.
Zacks ESP: ESP for Central Garden & Pet
is 0.00%. This is because both the Most Accurate Estimate and the
Zacks Consensus Estimate stand at 47 cents.
Zacks #3 Rank (Hold): Central Garden & Pet’s
Zacks Rank #3 (Hold) lowers the predictive power of ESP because
this Zacks Rank when combined with a 0.00% ESP makes surprise
prediction difficult. We caution against stocks with a Zacks Rank
#4 and 5 (Sell-rated stocks) going into an earnings announcement,
especially when the company is witnessing negative estimate
revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these to have the right combination of elements to post an
earnings beat:
The Walt Disney Company’s (DIS), with an Earnings
ESP of +1.03% and a Zacks Rank #2 (Buy).
CST Brands Inc. (CST), with an Earnings ESP of
+14.29% and a Zacks Rank #3 (Hold).
Vitamin Shoppe Inc. (VSI), with an Earnings ESP of
+1.47% and a Zacks Rank #3 (Hold).
CENTRAL GARDEN (CENT): Free Stock Analysis Report
CST BRANDS INC (CST): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
VITAMIN SHOPPE (VSI): Free Stock Analysis Report
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