Central Garden & Pet Company (CENT) is surging on higher estimates and another solid quarter that produced earnings that were better than expectations.
Company Description
Central Garden & Pet Company produces and markets branded products for the lawn and garden and pet supplies market. The company was founded in 1955 and has a market cap of $843 million.
Shares of CENT are up huge over the last 6 months as the company continues to beat earnings estimates. Central Garden’s recent second-quarter results, reported on Aug 5, kept the trend alive.
Second-Quarter Results
Sales were down a marginal 2% from last year to $482 million. Earnings came in at 44 cents per share, 15 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 4 quarters by an average of 10 cents, or 84%.
Segment Analysis
The company’s garden products segments sales were up 5% from last year to $267 million. Its pet products segment, however, was down 10% to $215 million.
Estimates Climbing
Since word of the solid quarter hit the Street, estimates have moved higher. The current year is up 3 cents in the last 30 days to 92 cents per share. The next-year estimate is pegged at $1.02, a 10% growth projection.
Based on the current-year estimate, shares of CENT are trading with a P/E multiple of 13X, a discount to the overall market.
The Chart
Shares of CENT have been rallying since last November after bottoming out just above $2.50. Since then, CENT has crossed topped off just a pinch shy of $14. Take a look below.
