CENT gave us a preview of what to expect earlier this week. I thought we might take a larger hit than we've seen, but I guess their forecast of $1.02 for the year kept folks from selling. I think that if they can follow through and simply meet their own expectations beginning with Q2, the market will reward them with a higher PE.
article:
Central Garden & Pet Provides Guidance On Fiscal 2000 Earnings
LAFAYETTE, CALIFORNIA--(BUSINESS WIRE)--January 3, 2000--Central Garden & Pet Company (NASDAQ: CENT - news), the nation's leading manufacturer, supplier, and merchandiser of consumer lawn and garden and pet supply products, announced today that it expects to report a loss of between $0.29 and $0.39 per share for the fiscal first quarter of 2000, ended December 25, 1999. The Company typically reports a first quarter loss. The Company said results reflect lower distribution sales related to the previously announced expiration of the Solaris Alliance, a seasonal shift in garden product sales, increased interest costs and a lower share count resulting from Central's share repurchase program, and a timing difference in sales of methoprene, the active ingredient in certain pet products, among other factors.
Central Garden & Pet remains comfortable with the current analyst consensus estimate of $1.02 earnings per share for the full year. The Company reiterated that its previously announced strategic review and resulting decisions could impact results.
Regards - Dale |
