Central Garden Loss Widens, Outlook Choppy; Stock Down - Update

(RTTNews) - Central Garden & Pet Co. (CENT) Tuesday reported a wider fourth-quarter loss, hurt by a seven percent decline in sales, while the prior year benefited from an extra week. Consequently, results for the quarter came in well short of Wall Street estimates.

Moving forward, the company said it expects choppy performance in the near term and that it will take up to two years to stabilize.

Investors were upset with the announcement, sending Central Garden shares sliding about 6 percent in after-hours trade on the Nasdaq.

Central Garden & Pet makes products for the pet, and lawn and garden supplies markets.

The Walnut Creek, California-based company posted a quarterly net loss of $22.6 million or $0.47 per share, compared with a loss of $10 million or $0.21 per share last year. On average, four analysts polled by Thomson Reuters expected a loss of $0.18 per share for the quarter. Analysts' estimates typically excludes special items.

Sales for the quarter slipped to $368.8 million from $397 million in the prior year. Analysts expected sales of $395.7 million for the quarter.

"We have made good progress in our Pet segment in laying the foundation for future success. However, our Garden results are disappointing," said CEO John Ranelli.

The company's stock closed Tuesday's regular trade at $7.44, down $0.26 or 3.38%, on a volume of 167 thousand shares. In after hours, the stock dropped $0.44 or 5.91%, trading at $7.00.