Central Garden & Pet (NASDAQ:CENT) Posts Earnings Results, Beats Expectations By $0.10 EPS

Central Garden & Pet (NASDAQ:CENT) announced its earnings results on Wednesday. The company reported $0.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.10, Zacks reports. The company had revenue of $617.37 million for the quarter, compared to analyst estimates of $636.62 million. Central Garden & Pet had a return on equity of 11.17% and a net margin of 5.20%.The firm’s quarterly revenue was down 5.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.21 earnings per share. 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 is reaffirming Fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better, signaling confidence in the year despite near-term headwinds.
• Q1 net sales were $617 million, down 6% primarily from retailer spring shipment timing and portfolio optimization, while non-GAAP gross margin expanded 100 basis points to 30.8% and non-GAAP EPS was $0.21, roughly in line with last year and above internal expectations.
• Management says the multi-year cost and simplicity and supply?chain network redesign work is largely complete (facility consolidations into modern fulfillment centers), and those efficiencies are now being leveraged to shift focus toward growth and innovation.
• Balance sheet strength remains a priority: cash and short?term investments of $721 million, no borrowings on the credit facility, gross leverage ~2.9x and net leverage ~1.2x, enabling continued share repurchases (660k shares bought in Q1) and selective M&A.
• The garden segment faces near?term pressure—net sales down 12% and a non?GAAP operating loss—driven by shipment timing, product-line transitions and SKU rationalization, leaving top?line upside dependent on the upcoming selling season and weather.

Central Garden & Pet Price Performance

NASDAQ CENT traded up $1.48 on Thursday, hitting $36.59. 126,426 shares of the company’s stock were exchanged, compared to its average volume of 67,019. The stock has a 50-day moving average of $32.93 and a 200-day moving average of $33.78. The stock has a market cap of $2.28 billion, a price-to-earnings ratio of 14.35 and a beta of 0.73. Central Garden & Pet has a 52 week low of $28.77 and a 52 week high of $41.25. The company has a current ratio of 3.67, a quick ratio of 2.33 and a debt-to-equity ratio of 0.75.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Russell Investments Group Ltd. grew its holdings in shares of Central Garden & Pet by 632.3% during the third quarter. Russell Investments Group Ltd. now owns 974 shares of the company’s stock worth $32,000 after purchasing an additional 841 shares during the last quarter. Quarry LP acquired a new stake in Central Garden & Pet during the 3rd quarter worth approximately $35,000. Tower Research Capital LLC TRC grew its holdings in Central Garden & Pet by 152.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,920 shares of the company’s stock worth $68,000 after acquiring an additional 1,159 shares during the last quarter. iSAM Funds UK Ltd acquired a new position in Central Garden & Pet in the 3rd quarter valued at approximately $94,000. Finally, State of Wyoming acquired a new position in Central Garden & Pet in the 2nd quarter valued at approximately $223,000. Institutional investors own 16.13% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on CENT shares. Weiss Ratings reissued a “sell (d+)” rating on shares of Central Garden & Pet in a research report on Monday, December 29th. CJS Securities upgraded shares of Central Garden & Pet to a “strong-buy” rating in a research note on Thursday, December 11th. Zacks Research upgraded shares of Central Garden & Pet from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 13th. Finally, Canaccord Genuity Group reiterated a “buy” rating and issued a $50.00 price target on shares of Central Garden & Pet in a research report on Tuesday, November 25th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $42.50.

Key Stories Impacting Central Garden & Pet

Here are the key news stories impacting Central Garden & Pet this week:

• Positive Sentiment: CENT beat Q1 EPS estimates and reported gross?margin expansion, which supported profitability despite lower sales. Read More.
• Positive Sentiment: Management reaffirmed a FY2026 EPS target (~$2.70) and emphasized a shift toward innovation and growth initiatives, offering forward?looking support for earnings recovery. Read More.
• Positive Sentiment: At least one outlet reported an analyst price target increase to $44.46, signaling some bullish analyst sentiment post?results. Read More.
• Neutral Sentiment: Full earnings materials and the conference?call transcript/slides are available for deeper review of channel/shipment timing explanations and margin drivers. Read More.
• Neutral Sentiment: Company insiders exercised options (small realized amount), a routine filing that is unlikely to materially affect the stock. Read More.
• Negative Sentiment: Revenue missed estimates and was down roughly 6% year?over?year, management attributed the shortfall mainly to shipment timing and portfolio transitions — a clear near?term growth headwind. Read More.
• Negative Sentiment: FY2026 EPS guidance (~$2.70) is modestly below some sell?side consensus (~$2.77), which could cap upside until revenue trends and shipment timing normalize. Read More.

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.