Investing 501
Long only, value, special situations, deep value

Central Garden & Pet: One Step Forward, One Step Back

As long-term investors, we normally do not pay much attention to any particular quarter's results or investor reaction to them. However, since Central Garden & Pet's (NASDAQ:CENT) stock price declined by almost 25% after investors reacted with vigor to "disappointing results," we thought we would provide a brief overview of what we think were the important aspects of the company's results.

We think that short-term investors were hoping that CENT's third quarter results would "beat expectations" due to the relatively good quarterly results posted by competitors Scotts Miracle-Gro (NYSE:SMG) and Spectrum Brands (NYSE:SPB). Alas, CENT reported results that missed on both the top and bottom lines and unlike SMG and SPB whose stocks trade...

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