Central Garden & Pet Q4 sales beat estimates on strong demand in garden segment

Overview

• Q4 sales of $678.18 mln beat analyst expectations

• Central Garden & Pet fiscal 2025 net sales fall 2% to $3.1 bln

• Adjusted EPS for fiscal 2025 rises to $2.73 from $2.13

• Company expects fiscal 2026 non-GAAP EPS of $2.70 or better

Outlook

• Central expects fiscal 2026 non-GAAP EPS of $2.70 or better

• Capital spending projected at $50 mln to $60 mln for fiscal 2026

• Outlook considers competitive retail environment and inflation in certain commodities

Result Drivers

• COST AND SIMPLICITY AGENDA - Central's margin expansion and profitability were driven by its multi-year Cost and Simplicity agenda, which improved logistics and reduced complexity

• GARDEN SEGMENT DEMAND - Increased consumer demand in the Garden segment, driven by an extended selling season and strong retail execution, contributed to sales growth in Q4

• U.K. OPERATIONS WIND-DOWN - Closure of U.K. operations and lower durables sales impacted Pet segment sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $43.50, about 25.8% above its November 21 closing price of $32.29

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwbSYFdXa

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