Central Garden & Pet (NASDAQ:CENT) Releases Earnings Results, Beats Estimates By $0.01 EPS

Central Garden & Pet (NASDAQ:CENT) posted its quarterly earnings results on Wednesday. The company reported $1.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.53 by $0.01, FiscalAI reports. Central Garden & Pet had a net margin of 5.42% and a return on equity of 11.55%. The company had revenue of $882.36 million for the quarter, compared to the consensus estimate of $882.96 million. During the same period last year, the firm posted $1.56 EPS. The company’s revenue for the quarter was down 8.2% on a year-over-year basis. 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 Performance

Shares of CENT stock traded down $0.01 during trading hours on Wednesday, reaching $44.06. The stock had a trading volume of 83,916 shares, 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 twelve month low of $28.77 and a twelve month high of $45.78. The firm has a 50-day simple moving average of $42.61 and a 200-day simple moving average of $38.90. The firm has a market capitalization of $2.76 billion, a PE ratio of 16.02 and a beta of 0.61.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Russell Investments Group Ltd. increased its stake in shares of 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 during the period. Quarry LP acquired a new position in shares of Central Garden & Pet during the third quarter worth approximately $35,000. Tower Research Capital LLC TRC grew its holdings in 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 worth $68,000 after buying an additional 1,159 shares in the last quarter. iSAM Funds UK Ltd bought a new position in Central Garden & Pet in the 3rd quarter worth approximately $94,000. Finally, State of Wyoming acquired a new stake in Central Garden & Pet in the 2nd quarter valued at approximately $223,000. 16.13% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CENT has been the topic of a number of recent research reports. Zacks Research cut shares of Central Garden & Pet from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Canaccord Genuity Group upped their target price on Central Garden & Pet from $51.00 to $54.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Finally, Weiss Ratings upgraded Central Garden & Pet from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $54.00.

Central Garden & Pet Company Profile

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.