Overview

• US pet and garden goods firm's preliminary fiscal Q2 sales rose, beating analyst expectations

• Preliminary operating income for fiscal Q2 beat analyst expectations

• Company reaffirmed fiscal 2026 non-GAAP EPS outlook and announced new pet distribution partnership

Outlook

• Central Garden & Pet maintains fiscal 2026 non-GAAP diluted EPS outlook of $2.70 or better

• Company expects pet distribution partnership to have minimal impact on fiscal 2026 EPS

• Capital expenditures projected at $50 mln to $60 mln for fiscal 2026

Result Drivers

• PET SEGMENT GROWTH - Co said Pet segment sales rose due to continued strength in Dog & Cat and Animal Health, and Outdoor Cushions shipment timing

• GARDEN SEGMENT GROWTH - Co said Garden segment sales rose due to shipment timing and new listings in Grass and Fertilizer

• MARGIN EXPANSION - Co reported expanded gross and operating margins, citing consistent execution and improving performance across the organization

Company press release: ID:nBw9nfN1Na

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 38.5% above its May 5 closing price of $36.09

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

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