There's no turnaround in sight for
Central Garden & Pet Company
). On Dec 10, this Zacks Rank #5 (Strong Sell) missed the Zacks
Consensus for the 5th straight quarter.
Central Garden makes lawn and garden and pet products under several
For lawn and garden, it makes grass seed, wild bird food and insect
control products. Its pet products include aquarium products, flea,
tick, mosquito and other pest control products, edible bones, cages
Sales Sink in the Fiscal Fourth Quarter
On Dec 10, Central Garden reported its fiscal fourth quarter result
and missed on the Zacks Consensus by 35%. Earnings were a loss of
$0.31 compared to the Zacks Consensus of a loss of $0.23.
Its track record on beating the estimate has been dismal for the
last five years. The last beat was recorded all the way back in
Sales fell 7% to $368.8 million. Sales in the Garden segment fell
7% to $148.4 million, but there was an extra week in the prior
year's quarter. Sales of the branded products fell 9%.
In the Pet segment, sales also fell 7% to $220.4 million while its
branded products slid 8%.
A near term turnaround doesn't appear to be on the horizon.
"Our financial results are simply unacceptable," said John Ranelli,
President and CEO.
"While we will see some improvements along the way, it is going to
take another year or two to get our performance consistently where
we want it to be," he added.
The analysts don't think there will be a turnaround in the near
term either. Full year fiscal 2014 estimates have been slashed
since the fourth quarter earnings report. The Zacks Consensus has
fallen to $0.38 from $0.57 just 30 days ago.
If you're looking for a consumer products company with well known
). The maker of Crockpot and First Alert is a Zacks Rank #3 (Hold)
but is expected to grow earnings another 10% next year.
[In full disclosure, the author of this article owns shares of
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