Pet company Central Garden & Pet (NASDAQGS:CENT) reported Q4 FY2023 results exceeding Wall Street analysts' expectations, with revenue up 6% year on year to $750.1 million. Turning to EPS, Central Garden & Pet made a GAAP profit of $0.05 per share, improving from its loss of $0.04 per share in the same quarter last year.
Is now the time to buy Central Garden & Pet? Find out by reading the original article on StockStory.
Central Garden & Pet (CENT) Q4 FY2023 Highlights:
- Revenue: $750.1 million vs analyst estimates of $735.1 million (2.1% beat)
- EPS: $0.05 vs analyst expectations of $0.06 (11.8% miss)
- Free Cash Flow of $141 million, down 55.1% from the previous quarter
- Gross Margin (GAAP): 26.3%, down from 28.2% in the same quarter last year
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQGS:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Household ProductsHousehold products companies engage in the manufacturing, distribution, and sale of goods that maintain and enhance the home environment. This includes cleaning supplies, home improvement tools, kitchenware, small appliances, and home decor items. Companies within this sector must focus on product quality, innovation, and cost efficiency to remain competitive.
Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options.
Sales GrowthCentral Garden & Pet is larger than most consumer staples companies and benefits from economies of scale, giving it an edge over its smaller competitors.
As you can see below, the company's annualized revenue growth rate of 7.1% over the last three years was decent for a consumer staples business.
This quarter, Central Garden & Pet reported solid year-on-year revenue growth of 6%, and its $750.1 million in revenue outperformed Wall Street's estimates by 2.1%. Looking ahead, analysts expect sales to grow 1.6% over the next 12 months.
Key Takeaways from Central Garden & Pet's Q4 Results Sporting a market capitalization of $2.21 billion, Central Garden & Pet is among smaller companies, but its more than $502.9 million in cash on hand and positive free cash flow over the last 12 months puts it in an attractive position to invest in growth.
It was good to see Central Garden & Pet beat analysts' revenue expectations this quarter, driven by better-than-expected performance in its pet segment (which overshadowed its underperformance in the garden segment). On the other hand, its operating margin, adjusted EBITDA, and EPS missed analysts' expectations. Its full-year EPS guidance also underwhelmed. Overall, this was a mediocre quarter for Central Garden & Pet. The stock is flat after reporting and currently trades at $43.66 per share.
The author has no position in any of the stocks mentioned in this report.
