WALNUT CREEK, Calif. - Central Garden & Pet Company (NASDAQ:CENT) (NASDAQ:CENTA) reported better-than-expected fiscal first quarter earnings and revenue, sending its stock up 2.2% in after-hours trading.
The pet and garden products company posted earnings per share of $0.21 for the quarter ended December 28, 2024, significantly beating analyst estimates of -$0.02. Revenue came in at $656 million, surpassing the consensus forecast of $630.43 million and rising 3.3% YoY from $635 million.
Central Garden & Pet’s strong performance was driven by increased shipments, productivity gains, and easing inflation. The company saw growth in both its top and bottom lines compared to the same quarter last year.
"The fiscal year is off to a strong start," said CEO Niko Lahanas. "We are encouraged by our first quarter performance, but recognize this period is typically our smallest quarter and benefited from the favorable timing of shipments and promotional activities."
The Pet segment saw a 4% increase in net sales to $427 million, while the Garden segment grew 2% to $229 million. Both segments benefited from customers shifting orders into the first quarter.
Despite the positive results, Central Garden & Pet maintained its fiscal 2025 guidance for non-GAAP EPS of $2.20 or better, slightly below the analyst consensus of $2.24.
The company’s gross margin improved by 160 basis points to 29.8%, driven by productivity gains and moderating inflation. Operating income grew to $28 million from $8 million a year ago, with operating margin expanding by 300 basis points to 4.3%.
Central Garden & Pet repurchased 1.68 million shares or $52 million of its stock during the quarter. As of the end of the fiscal first quarter, $131 million remains available for future stock repurchases.
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