Central Garden & Pet's Q1 sales miss estimates

Overview

• Consumer goods firm's fiscal Q1 2026 revenue missed analyst expectations

• Adjusted EPS for fiscal Q1 2026 beat analyst expectations

• Company repurchased 660,000 shares for $18.5 mln during the quarter

Outlook

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

• Company projects capital expenditures of $50 mln to $60 mln for fiscal 2026

Result Drivers

• SHIPMENT TIMING - Central Garden & Pet reported that shipment timing affected Q1 sales, with volumes shifting into the second quarter

• PORTFOLIO OPTIMIZATION - Co's sales were impacted by portfolio optimization efforts, including rationalizing lower-margin categories and closing U.K. operations

• COST AND SIMPLICITY AGENDA - Central's Cost and Simplicity agenda is driving margin improvements through streamlining operations

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", no "hold" and 1 "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 $50.00, about 45% above its February 3 closing price of $34.48

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw54kpVCa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.