CENTA Earnings Prediction
The chart below shows how CENTA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CENTA sees a -0.20% change in stock price 10 days leading up to the earnings, and a +3.46% change 10 days following the report. On the earnings day itself, the stock moves by +0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
CENTA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
900.09M
-0.98%
41.85%
Gross Margin
31.26%
9.45%
10.89%
Operating Margin
10.97%
27.71%
724.81%
Net Margin
6.96%
29.85%
7633.33%
EPS
0.93
3.33%
9200.00%
No Data Available
CENTA Earnings Analysis
Central Garden & Pet Company Corporation (CENTA.O) Earnings Conference Call
Positive
Central Garden & Pet delivered a solid quarter, with GAAP earnings per share of $0.93 and non-GAAP earnings per share of $0.99, ahead of the prior year. Net sales were almost on par with the previous year, showcasing the company's resilience and growth despite challenges.
The focus on cost management improved margins, with a 270 basis point improvement in non-GAAP gross margin to 31.3%.
E-commerce sales grew, and market share expanded across most pet and garden categories, demonstrating the company's ability to adapt to changing consumer behaviors and preferences.
Progress on the cost and simplicity program is notable, enabling investments in the business and offsetting sustained cost increases.
Initiatives to simplify operations and improve efficiency are yielding results, exemplified by the consolidation of distribution locations into one modern facility that will drive significant savings and efficiencies.
The program has helped in moderating inflation and driving gross margin expansion, positioning the company for sustainable growth and profitability.
The outlook for the fiscal year remains unchanged, with a strong belief in the company's competitive strength, long-term strategy, and positive consumer trends in the pet and garden industries.
Despite potential challenges like softer consumption in durable pet product categories and lower foot traffic in key retailers, Central remains confident in its ability to navigate through uncertainties.
The company's continued focus on executing its long-term strategy reflects a commitment to driving future performance and capturing opportunities for growth.
Strong financial position and disciplined approach to capital allocation position Central Garden & Pet for potential growth and margin accretive acquisition opportunities.
With a solid balance sheet and available credit facility, Central is poised to capitalize on strategic acquisitions that can enhance its market position and drive long-term value for shareholders.
The company's outlook excludes potential impacts from acquisitions or restructuring activities, indicating a proactive approach to managing risks and leveraging growth opportunities.
Negative
- The organic net sales for the quarter declined by 1% both in total and in the Pet segment, mainly due to softness in pet adoptions and durables across pet businesses.
- Despite cost management efforts, non-GAAP SG&A expenses increased by 1% above the prior year, impacting the operating margin.
- Foot traffic at key retailers is down compared to the previous year, and there is a persistent pressure for price concessions from retailers, affecting overall sales.
- The outlook for the remainder of the fiscal year includes expectations of softer consumption in durable pet product categories and lower foot traffic in key retailers.
- The closure of a manufacturing facility in California and consolidation of multiple distribution locations resulted in one-time costs impacting the cost of goods sold and SG&A.
