Central Garden & Pet (CENT) - Bull of the Day
15 August 2012 - 10:00AM
Zacks
Central Garden & Pet Company's (CENT) third-quarter 2012
earnings of $0.47 per share came in line with the Zacks Consensus
Estimate, and rose 51.6% from the prior-year quarter on the back of
increased marketing efforts, brand-building initiatives, and
product innovation that helped drive consumer demand. Total revenue
rose 10% to $533.8 million, and beat the Zacks Consensus Estimate
of $506 million.
Central Garden & Pet intends to transform itself into an
integrated, multi-brand company. Going forward, the company's
primary focus is to contain costs, improve operating efficiencies
and augment revenue growth potentiality. Gross margin expanded 300
basis points to 33.8%, whereas operating margin increased 160 basis
points to 9.2% during the quarter.
The stock is trading at a premium to the industry average based
on our forward fiscal 2012 earnings estimate, but at a discount
based on forward fiscal 2013. Our target price of $11.00, 19.0X
2012 EPS, reflects this our recommendation upgrade from Neutral to
Outperform.
CENTRAL GARDEN (CENT): Free Stock Analysis Report
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