Central Garden & Pet (NASDAQ:CENT) released its quarterly earnings results on Monday, significantly surpassing analysts’ expectations. The company reported a loss of $0.09 per share, which beat the consensus estimate of $0.21 by $0.12, according to data from Zacks. This positive performance aligns with a net margin of 4.44% and a return on equity of 10.77%.
The company generated $678.18 million in revenue for the quarter, exceeding projections of $657.86 million. In response to its performance, Central Garden & Pet updated its fiscal year 2026 guidance to an estimated $2.70 EPS.
Market Reaction and Stock Performance
Following the earnings announcement, shares of Central Garden & Pet experienced a decline of 2.7%, trading down $0.86 to reach $31.43 during mid-day trading. The stock’s trading volume was 248,934 shares, notably higher than its average of 121,427 shares. Over the past year, the stock has fluctuated between a low of $28.77 and a high of $43.88. Currently, the company’s fifty-day simple moving average stands at $31.85, while the 200-day simple moving average is at $34.96.
Central Garden & Pet maintains a debt-to-equity ratio of 0.75, a current ratio of 3.56, and a quick ratio of 2.28. With a market capitalization of $1.98 billion, the company’s price-to-earnings ratio is 14.29, and it has a beta of 0.66, indicating lower volatility compared to the broader market.
Institutional Investment Activity
Recent trading activity indicates growing interest from institutional investors. Notably, Russell Investments Group Ltd. increased its stake in Central Garden & Pet by an impressive 632.3% during the third quarter, now owning 974 shares valued at approximately $32,000. Quarry LP also purchased a new stake in the company worth about $35,000.
Similarly, Tower Research Capital LLC raised its position by 152.3%, now holding 1,920 shares valued at around $68,000. Other notable investments include iSAM Funds UK Ltd., which entered the market with a new position worth approximately $94,000, and the State of Wyoming, which acquired shares valued at $223,000.
Currently, institutional investors and hedge funds hold 16.13% of the stock, reflecting a growing confidence in Central Garden & Pet’s market potential.
Central Garden & Pet operates in the production and distribution of both branded and private label products for the lawn, garden, and pet supplies sectors. The company is segmented into Pet and Garden divisions, with the Pet segment focusing on a range of supplies for dogs and cats, including treats, toys, and grooming products, among others.
As the company continues to navigate the market, investors will be closely watching its performance and future guidance, particularly as it adjusts its expectations for fiscal year 2026.
