Overview

* Central Garden & Pet ( CENT ) Q3 sales fall 4%, missing analyst expectations, per LSEG data

* Adjusted EPS for Q3 rises 18%, beating analyst estimates, per LSEG data

* Co reaffirms fiscal 2025 non-GAAP EPS outlook of about $2.60

Outlook

* Central reaffirms fiscal 2025 non-GAAP EPS of approximately $2.60

* Company anticipates fiscal 2025 capital expenditures of $50 to $60 mln

* Central sees challenges from macroeconomic and geopolitical uncertainty

* Company excludes tariff changes impact from fiscal 2025 outlook

Result Drivers

* COST AND SIMPLICITY PROGRAM - Co attributes margin expansion and earnings growth to productivity efforts from its Cost and Simplicity program

* PET SEGMENT CHALLENGES - Softer demand in durable pet products and assortment rationalization led to a 3% decline in Pet segment sales

* GARDEN SEGMENT CHALLENGES - Loss of product lines and a late spring impacted Garden segment sales, but productivity efforts increased operating income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $961 mln $991.70

mln (5

Analysts

)

Q3 Beat $1.56 $1.43 (6

Adjusted Analysts

EPS )

Q3 EPS $1.52

Q3 Net $95 mln

Income

Q3 Beat $135 mln $127.90

Operatin mln (4

g Income Analysts

)

Q3 Gross $332 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 ( CENT ) is $45.00, about 12% above its August 5 closing price of $39.62

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)