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

Central Garden & Pet (NASDAQ:CENT) posted its quarterly earnings results on Wednesday. The company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.10, Zacks reports. The firm had revenue of $617.37 million for the quarter, compared to analysts’ expectations of $636.62 million. Central Garden & Pet had a net margin of 5.04% and a return on equity of 11.00%. The business’s revenue for the quarter was down 5.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $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 Stock Performance

CENT opened at $36.60 on Friday. The company has a 50 day simple moving average of $32.97 and a two-hundred day simple moving average of $33.80. The company has a debt-to-equity ratio of 0.75, a current ratio of 3.67 and a quick ratio of 2.33. The firm has a market cap of $2.28 billion, a P/E ratio of 14.94 and a beta of 0.73. Central Garden & Pet has a 1-year low of $28.77 and a 1-year high of $41.25.

Wall Street Analyst Weigh In

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

Institutional Trading of Central Garden & Pet

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in shares of Central Garden & Pet by 3.1% in the third quarter. Vanguard Group Inc. now owns 1,100,839 shares of the company’s stock worth $35,942,000 after purchasing an additional 32,716 shares during the last quarter. Millennium Management LLC increased its position in Central Garden & Pet by 39.2% in the first quarter. Millennium Management LLC now owns 259,144 shares of the company’s stock worth $9,500,000 after purchasing an additional 72,977 shares during the last quarter. Jane Street Group LLC bought a new stake in Central Garden & Pet in the first quarter worth $7,347,000. Hotchkis & Wiley Capital Management LLC grew its stake in shares of Central Garden & Pet by 1.3% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 178,915 shares of the company’s stock worth $5,842,000 after buying an additional 2,375 shares in the last quarter. Finally, Citadel Advisors LLC increased its holdings in shares of Central Garden & Pet by 120.9% in the 3rd quarter. Citadel Advisors LLC now owns 156,596 shares of the company’s stock worth $5,113,000 after buying an additional 85,706 shares during the last quarter. Hedge funds and other institutional investors own 16.13% of the company’s stock.

Key Stories Impacting Central Garden & Pet

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

• Positive Sentiment: Q1 EPS beat and margin expansion — CENT reported $0.21 EPS vs. a $0.11 consensus and said gross margins improved, which supported the earnings beat despite lower sales. CENT Q1 Earnings Beat on Margins, Revenues Miss on Shipment Timing
• Positive Sentiment: Analyst price-target lift — At least one published note increased CENT’s price target (~+11.6% to $44.46), reflecting greater optimism from some analysts after the quarter. Central Garden & Pet price target increased
• Positive Sentiment: Reaffirmed FY2026 EPS goal and strategic focus — Management reiterated a $2.70+ EPS target for FY2026 and emphasized a shift toward innovation and growth initiatives, which supports medium‑term upside if execution follows. Central Garden & Pet reaffirms $2.70+ EPS target for 2026
• Neutral Sentiment: Revenue softness driven by timing and portfolio moves — Management attributed the year‑over‑year sales decline (shipment timing and portfolio adjustments), suggesting some weakness may be transitory but still warrants monitoring. CENT Q1 Earnings Beat on Margins, Revenues Miss on Shipment Timing
• Neutral Sentiment: Earnings call/transcript and slide deck available — Investors can review management commentary and the slide deck to assess margin drivers, inventory/shipment cadence, and growth initiatives. Q1 press release / slide deck
• Negative Sentiment: Revenue missed consensus and fell YoY — Q1 sales were $617.4M vs. a $636.6M estimate, down ~5.9% year‑over‑year, which is the primary near‑term headwind to valuation multiple expansion. CENT Q1 revenue miss details
• Negative Sentiment: FY2026 EPS guidance slightly below Street — The company set FY2026 EPS guidance around $2.70, below the ~$2.77 consensus, leaving limited near‑term upside to estimates unless sales accelerate. Guidance and strategy commentary

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.