Pet company Central Garden & Pet (NASDAQ:CENT) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 7.4% year on year to $833.5 million. Its non-GAAP profit of $1.04 per share was 11.6% above analysts’ consensus estimates.
Is now the time to buy Central Garden & Pet? Find out in our full research report.
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Revenue: $833.5 million vs analyst estimates of $878.8 million (7.4% year-on-year decline, 5.1% miss)
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Adjusted EPS: $1.04 vs analyst estimates of $0.93 (11.6% beat)
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Adjusted EBITDA: $120.8 million vs analyst estimates of $114.5 million (14.5% margin, 5.5% beat)
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Management reiterated its full-year Adjusted EPS guidance of $2.20 at the midpoint
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Operating Margin: 11.2%, in line with the same quarter last year
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Free Cash Flow was -$57.52 million compared to -$33.87 million in the same quarter last year
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Market Capitalization: $2.04 billion
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $3.16 billion in revenue over the past 12 months, Central Garden & Pet carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Central Garden & Pet’s demand was weak over the last three years. Its sales fell by 2.4% annually, a poor baseline for our analysis.
This quarter, Central Garden & Pet missed Wall Street’s estimates and reported a rather uninspiring 7.4% year-on-year revenue decline, generating $833.5 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 3.3% over the next 12 months. Although this projection indicates its newer products will fuel better top-line performance, it is still below the sector average.
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