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

Key Points

• Central Garden & Pet beat Q2 expectations with $1.29 EPS (vs. $1.08 expected) and $906M in revenue (up ~8.7% YoY), and management reiterated full‑year non‑GAAP diluted EPS guidance of about $2.70.
• The company formed a joint venture with Phillips Pet Food (Central retains 20%), which management says will drive a reported revenue decline in the low‑teens in H2 and a near‑term EPS dilution of roughly $0.03–$0.05.
• Management highlighted margin expansion (gross margin 33.1%, operating margin 12.6%), record sales/earnings, and strong liquidity — $653M in cash, ~1.3x net leverage and $128M remaining on the share buyback — to support M&A and capital returns.

Central Garden & Pet (NASDAQ:CENT - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.08 by $0.21, FiscalAI reports. The firm had revenue of $906.15 million for the quarter, compared to analysts' expectations of $846.58 million. Central Garden & Pet had a return on equity of 10.99% and a net margin of 5.04%.The company's revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.04 EPS. Central Garden & Pet updated its FY 2026 guidance to 2.700- EPS.

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

• Central delivered a record Q2 and record first half, reporting $906 million in Q2 sales (+9%), expanded margins, and record diluted EPS of $1.28.
• Management cited ongoing margin expansion and productivity (gross margin 33.1%, operating margin 12.6%) and reiterated full‑year non‑GAAP diluted EPS guidance of $2.70 or better.
• The company is simplifying operations (DoMyOwn moved to Covington; TDVBS manufacturing consolidated) while advancing innovation (new Nylabone, Farnam, and The Rebels products), which management says will drive efficiency and future growth.
• Central formed a joint venture with Phillips Pet Food and Supplies (Central retains 20%); management expects reported revenue to decline by a low‑teens percent in H2 and projects a near‑term EPS dilution of about $0.03–$0.05.
• Strong liquidity and capital flexibility — $653 million in cash/short‑term investments, net leverage ~1.3x, no draws on the credit facility and $128 million remaining on the share buyback — support M&A, reinvestment, and capital returns.

Central Garden & Pet Stock Performance

Shares of CENT traded up $0.74 on Wednesday, reaching $36.83. 62,025 shares of the company's stock traded hands, compared to its average volume of 53,759. Central Garden & Pet has a 52-week low of $28.77 and a 52-week high of $41.25. The stock has a market cap of $2.29 billion, a PE ratio of 15.03 and a beta of 0.62. The stock's 50 day simple moving average is $37.35 and its two-hundred day simple moving average is $34.68. The company has a current ratio of 3.42, a quick ratio of 1.97 and a debt-to-equity ratio of 0.76.

Insider Buying and Selling at Central Garden & Pet

In other news, Director John Ranelli sold 3,668 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $34.50, for a total transaction of $126,546.00. Following the completion of the sale, the director directly owned 646 shares of the company's stock, valued at $22,287. This trade represents a 85.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Brendan Dougher sold 3,250 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $33.38, for a total value of $108,485.00. Following the completion of the sale, the director owned 12,845 shares of the company's stock, valued at $428,766.10. The trade was a 20.19% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 8.20% of the company's stock.

Institutional Trading of Central Garden & Pet

Several hedge funds and other institutional investors have recently bought and sold shares of CENT. UBS Group AG grew its stake in shares of Central Garden & Pet by 59.8% in the third quarter. UBS Group AG now owns 36,185 shares of the company's stock worth $1,181,000 after acquiring an additional 13,545 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in shares of Central Garden & Pet in the second quarter worth $925,000. XTX Topco Ltd purchased a new stake in shares of Central Garden & Pet in the fourth quarter worth $607,000. Swiss National Bank grew its stake in shares of Central Garden & Pet by 6.2% in the fourth quarter. Swiss National Bank now owns 17,150 shares of the company's stock worth $551,000 after acquiring an additional 1,000 shares during the last quarter. Finally, Schonfeld Strategic Advisors LLC grew its stake in shares of Central Garden & Pet by 30.9% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 15,624 shares of the company's stock worth $502,000 after acquiring an additional 3,690 shares during the last quarter. Institutional investors own 16.13% of the company's stock.

Wall Street Analyst Weigh In

CENT has been the topic of a number of research analyst reports. Zacks Research cut Central Garden & Pet from a "strong-buy" rating to a "hold" rating in a report on Friday, February 6th. Weiss Ratings upgraded Central Garden & Pet from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $50.00.

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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