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

Central Garden & Pet (NASDAQ:CENT) issued its quarterly earnings data on Wednesday. The company reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.01, FiscalAI reports. The company had revenue of $883.72 million during the quarter, compared to the consensus estimate of $882.96 million. Central Garden & Pet had a net margin of 5.39% and a return on equity of 11.38%. Central Garden & Pet’s revenue for the quarter was down 8.2% on a year-over-year basis. During the same quarter last year, the company earned $1.56 earnings per share. 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 5.3%

Shares of NASDAQ:CENT traded down $2.46 during midday trading on Friday, reaching $44.08. The company had a trading volume of 48,279 shares, compared to its average volume of 78,827. Central Garden & Pet has a one year low of $28.77 and a one year high of $46.97. The company has a debt-to-equity ratio of 0.72, a current ratio of 3.45 and a quick ratio of 2.16. The stock has a market capitalization of $2.76 billion, a P/E ratio of 16.48 and a beta of 0.61. The stock’s fifty day moving average price is $42.85 and its 200-day moving average price is $39.08.

Hedge Funds Weigh In On Central Garden & Pet

A number of hedge funds have recently bought and sold shares of the company. Brooklyn Investment Group bought a new position in Central Garden & Pet during the fourth quarter worth $294,000. Alliancebernstein L.P. boosted its holdings in Central Garden & Pet by 11.3% in the third quarter. Alliancebernstein L.P. now owns 9,820 shares of the company’s stock worth $321,000 after purchasing an additional 1,000 shares during the period. BNP Paribas Financial Markets increased its stake in Central Garden & Pet by 25.4% during the third quarter. BNP Paribas Financial Markets now owns 10,102 shares of the company’s stock valued at $330,000 after purchasing an additional 2,048 shares during the last quarter. Franklin Resources Inc. increased its stake in Central Garden & Pet by 18.5% during the third quarter. Franklin Resources Inc. now owns 8,253 shares of the company’s stock valued at $269,000 after purchasing an additional 1,289 shares during the last quarter. Finally, Occudo Quantitative Strategies LP acquired a new stake in shares of Central Garden & Pet during the second quarter worth $293,000. 16.13% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on CENT shares. Weiss Ratings upgraded shares of Central Garden & Pet from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Canaccord Genuity Group lifted their price target on shares of Central Garden & Pet from $51.00 to $54.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, Zacks Research downgraded shares of Central Garden & Pet from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $54.00.

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.