Central Garden & Pet Q3 adjusted EPS beats estimates
Overview
Central Garden & Pet Q3 sales fall 4%, missing analyst expectations, per LSEG data
Adjusted EPS for Q3 rises 18%, beating analyst estimates, per LSEG data
Co reaffirms fiscal 2025 non-GAAP EPS outlook of about $2.60
Outlook
Central reaffirms fiscal 2025 non-GAAP EPS of approximately $2.60
Company anticipates fiscal 2025 capital expenditures of $50 to $60 mln
Central sees challenges from macroeconomic and geopolitical uncertainty
Company excludes tariff changes impact from fiscal 2025 outlook
Result Drivers
COST AND SIMPLICITY PROGRAM - Co attributes margin expansion and earnings growth to productivity efforts from its Cost and Simplicity program
PET SEGMENT CHALLENGES - Softer demand in durable pet products and assortment rationalization led to a 3% decline in Pet segment sales
GARDEN SEGMENT CHALLENGES - Loss of product lines and a late spring impacted Garden segment sales, but productivity efforts increased operating income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $961 mln | $991.70 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $1.56 | $1.43 (6 Analysts) |
Q3 EPS |
| $1.52 |
|
Q3 Net Income |
| $95 mln |
|
Q3 Operating Income | Beat | $135 mln | $127.90 mln (4 Analysts) |
Q3 Gross Profit |
| $332 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Central Garden & Pet Co is $45.00, about 12% above its August 5 closing price of $39.62
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nBw3Bld2ka
