Central Garden & Pet Company CENT is slated to report third-quarter fiscal 2015 results on Aug 4. In the last quarter, the company had posted a positive earnings surprise of 9.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Central Garden & Pet is revamping both its Pet and Garden segments. The company intends to have a balanced approach that encompasses improvement in revenues and profits through operational efficiency and targeted acquisitions.
However, analysts remain concerned about the wild bird feed business that impacted the company’s performance in the second quarter. For the third quarter, management had earlier projected earnings per share to be flat to down compared with the year-ago period.
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: Central Garden & Pet has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 28 cents.
Zacks Rank: Central Garden & Pet has a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
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:
Guess' Inc. GES has an Earnings ESP of +6.67% and a Zacks Rank #1 (Strong Buy).
Dean Foods Company DF has an Earnings ESP of +3.85% and a Zacks Rank #2 (Buy).
ULTA Salon, Cosmetics & Fragrance, Inc. ULTA has an Earnings ESP of +0.90% and a Zacks Rank #2.
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