Central Garden & Pet (NASDAQ:CENT) Announces Earnings Results

Key Points

• Central Garden & Pet narrowly beat earnings expectations, reporting quarterly EPS of $1.54 versus the $1.53 consensus. Revenue was $882.36 million, slightly below estimates of $882.96 million.
• Fiscal 2026 adjusted EPS guidance was raised to $2.85 or better, up from $2.70 or better. Organic sales rose 2%, while operating margin expanded 90 basis points to 15.4%, led by 3% growth in Garden sales.
• The company agreed to acquire an 80% stake in European pet-supplies maker TRIXIE for up to €400 million, with the transaction expected to close in the first half of fiscal 2027 and excluded from current guidance.

Central Garden & Pet (NASDAQ:CENT - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $1.54 earnings per share for the quarter, beating analysts' consensus estimates of $1.53 by $0.01, FiscalAI reports. The firm had revenue of $882.36 million for the quarter, compared to analyst estimates of $882.96 million. Central Garden & Pet had a net margin of 5.42% and a return on equity of 11.55%. Central Garden & Pet updated its FY 2026 guidance to 2.850- EPS.

Here are the key takeaways from Central Garden & Pet's conference call:

• Fiscal 2026 adjusted EPS guidance was raised to $2.85 or better, up from $2.70 or better, reflecting year-to-date performance and confidence in the fourth quarter.
• Organic sales increased 2% in the quarter, while operating margin expanded 90 basis points to 15.4%; Garden sales rose 3% and benefited from strength in fertilizer, Wild Bird, grass seed, and eCommerce.
• Management reported stabilization in Pet, with market-share gains in professional products, dog treats, rawhide, and flea and tick; online Pet sales grew 10% and Garden eCommerce sales increased more than 40%.
• Central agreed to acquire an 80% stake in European pet supplies company TRIXIE for up to €400 million, creating a broader global platform with potential long-term benefits from international growth, innovation, sourcing, manufacturing, and logistics synergies.
• Reported revenue fell 8% because of the exit from the lower-margin pet distribution business, though management expects limited earnings impact; the TRIXIE deal is expected to close in the first half of fiscal 2027 and is excluded from current guidance.

Central Garden & Pet Stock Down 0.0%

Shares of CENT traded down $0.01 during mid-day trading on Wednesday, hitting $44.06. 83,916 shares of the company's stock were exchanged, compared to its average volume of 77,633. The company has a debt-to-equity ratio of 0.72, a current ratio of 3.45 and a quick ratio of 2.16. Central Garden & Pet has a 52 week low of $28.77 and a 52 week high of $45.78. The company has a market cap of $2.76 billion, a PE ratio of 16.02 and a beta of 0.61. The company has a 50-day simple moving average of $42.61 and a 200 day simple moving average of $38.90.

Wall Street Analyst Weigh In

A number of brokerages recently commented on CENT. Zacks Research lowered shares of Central Garden & Pet from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Weiss Ratings raised shares of Central Garden & Pet from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday. Finally, Canaccord Genuity Group increased their target price on Central Garden & Pet from $51.00 to $54.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $54.00.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. grew its position in Central Garden & Pet by 632.3% in the third quarter. Russell Investments Group Ltd. now owns 974 shares of the company's stock valued at $32,000 after purchasing an additional 841 shares in the last quarter. Quarry LP acquired a new position in shares of Central Garden & Pet during the 3rd quarter worth about $35,000. Tower Research Capital LLC TRC grew its holdings in shares of Central Garden & Pet by 152.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,920 shares of the company's stock valued at $68,000 after acquiring an additional 1,159 shares in the last quarter. iSAM Funds UK Ltd acquired a new stake in shares of Central Garden & Pet in the third quarter valued at about $94,000. Finally, Commonwealth Equity Services LLC acquired a new stake in shares of Central Garden & Pet in the fourth quarter valued at about $211,000. Institutional investors and hedge funds own 16.13% of the company's stock.

About Central Garden & Pet

Central Garden & Pet NASDAQ: CENT is a leading North American specialty retailer, manufacturer and distributor serving the lawn and garden and pet supplies markets. The company operates through two primary segments: Pet and Garden. In the Pet segment, Central Garden & Pet offers a comprehensive range of products including pet food, treats, accessories, training products and habitat solutions for dogs, cats, birds, fish and small animals. The Garden segment encompasses a wide array of lawn, garden and outdoor living products, such as soils, fertilizers, planters, pest control solutions, landscape lighting and watering equipment.

Central Garden & Pet's product portfolio includes both proprietary and branded offerings.

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