adjusted eps
—
FY 2026
official guidance
CENTRAL GARDEN & PET COMPANY
Last · NasdaqGS$41.32+0.03 (+0.07%)close · yahoo · 13h ago
Market cap$2.59B9.7M sh
P/E · TTM15.3fwd 13.5 · eps 2.70
Beta0.59vs S&P 500
Div yield0.00%annual · TTM
52w range
$29.25$46.97
Volume107.8Ksession
| Revenue | $3.1B |
|---|---|
| Operating income | $250.0M |
| Net income | $162.8M |
| Free cash flow | $291.1M |
| Operating margin | 8.0% |
| Net margin | 5.2% |
| Return on equity | 10.3% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Operational execution is improving, but acquisition and organic-growth visibility remain insufficient for an aggressive position.
Central delivered a modest beat on adjusted EPS at $1.54 versus $1.53 consensus, while revenue fell 8% to $882 million and missed by 1.1%; underlying organic sales rose 2% to $862 million, with Garden up 3% and Pet organic sales up 2%. The raised FY2026 adjusted EPS outlook of $2.85 or better, expanding margins and strong cash generation support the thesis, but TRIXIE integration, weak reported growth and limited quantification of key offsets make this a hold rather than a clean buy.
Themes
- Organic Growth
- Garden Share Gains
- Pet Stabilization
- Trixie Acquisition
- Project Horizon
- Margin Expansion
Near term
Q4 Garden execution, particularly Fertilizer, Grass Seed and Wild Bird, will test whether share gains can persist despite difficult weather comparisons.
Pet dog-and-cat sales should recover if promotional timing normalizes and supply constraints following the South American plant fire fade; management said July trends were encouraging.
The Pet Distribution exit will continue to depress reported revenue for several quarters, even if the earnings impact remains limited.
TRIXIE is expected to close in the first half of fiscal 2027, but its contribution is excluded from current guidance.
Longer term
Project Horizon is approximately 95% complete, leaving future efficiency gains more dependent on utilization, AI, robotics and cross-segment integration than on major footprint reductions.
Management targets a return to long-term organic growth rates of 1%-4% in Pet and 1%-2% in Garden, but the call provided limited evidence that growth is sustainably above the low end.
TRIXIE could expand Central’s European pet platform, product innovation and manufacturing economics; management indicated synergies would likely begin in the second year after closing.
The company’s net leverage of 0.5x and nearly $1 billion of cash provide capacity for additional M&A, but further deal activity raises execution and capital-allocation risk.
Red flags
Management did not quantify the sales and margin impact from the South American plant fire, describing it as a one-time issue while acknowledging airfreight and alternative sourcing pressure.
TRIXIE synergy benefits were largely qualitative—manufacturing margin, sourcing and logistics opportunities—with management stating that synergies are not expected in the first year.
Management said it is pursuing additional acquisitions even before TRIXIE closes, increasing integration and management-bandwidth risk despite assurances that the businesses are culturally aligned.
Reported revenue declined 8%, and the Pet Distribution exit will create several more quarters of negative headline growth, potentially obscuring the underlying 2% organic increase.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
−$0.06
Est. revenue
607.3M
Earnings transcripts
- Issuer IR
Central+Garden++Pet+Company Earnings+Call 2026 08 05 English
CENTRAL GARDEN & PET COMPANY
- Issuer IR
2026 earnings call transcript
CENTRAL GARDEN & PET COMPANY
- Issuer IR
2026 earnings call transcript
CENTRAL GARDEN & PET COMPANY
- Issuer IR
2026 earnings call transcript
CENTRAL GARDEN & PET COMPANY
- Issuer IR
2026 earnings call transcript
CENTRAL GARDEN & PET COMPANY
- Issuer IR
Central+Garden++Pet+Company Earnings+Call 2026 08 05 English
CENTRAL GARDEN & PET COMPANY
Documents
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