Central Garden & Pet Co. (NASDAQ:CENT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Central Garden & Pet Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 40.43% to $0.28 in the quarter versus EPS of $0.47 in the year-earlier quarter.
Revenue: Rose 19.35% to $494.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Central Garden & Pet Co. reported adjusted EPS income of $0.28 per share. By that measure, the company missed the mean analyst estimate of $0.43. It missed the average revenue estimate of $524.95 million.
Quoting Management: “We anticipated lower results this quarter compared to strong sales and earnings gains a year ago; and although Pet performed in-line with our expectations, our Garden business did not,” said John Ranelli, President and CEO of Central Garden & Pet. “While our results for the quarter were disappointing, we are taking the right steps to strengthen our business for the future, including improving customer service and innovation, and identifying additional ways to take costs out of the business. In addition, we are leveraging a new matrix operating structure to bring decision making closer to the customer.” Mr. Ranelli continued, “There is much work to be done. Much of the recent progress we have made is not yet visible in our financial statements. Our business remains fundamentally strong with many opportunities ahead.”
Key Stats (on next page)…