Central Garden & Pet Company CENT, a leading name in the lawn, garden and pet supplies markets, is set to report its second-quarter fiscal 2014 results on May 6, 2014. Last quarter, it posted a positive surprise of 16.1%. Let us see how things are developing for this announcement.
Growth factors in the past quarter
Central Garden & Pet's first-quarter fiscal 2014 results benefited from the management's overhauling initiatives. The company is building on a balanced approach that encompasses revenue growth as well as cost reduction. Also, the focus on product innovation and improvement in customer relations helped it to post a narrower-than-expected loss.
Earnings Whispers
Our proven model does not conclusively project Central Garden & Pet as likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for Central Garden & Pet is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 47 cents.
Zacks #3 Rank (Hold): Central Garden & Pet's Zacks Rank #3 (Hold) lowers the predictive power of ESP because this Zacks Rank when combined with a 0.00% ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
The Walt Disney Company's DIS, with an Earnings ESP of +1.03% and a Zacks Rank #2 (Buy).
CST Brands Inc. CST, with an Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).
Vitamin Shoppe Inc. VSI, with an Earnings ESP of +1.47% and a Zacks Rank #3 (Hold).
CST BRANDS INC CST: Free Stock Analysis Report
DISNEY WALT DIS: Free Stock Analysis Report
VITAMIN SHOPPE VSI: Free Stock Analysis Report
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