Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [4] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [5] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate shifts [6] - The VGM Score combines the three Style Scores to identify stocks with attractive value, growth potential, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [10] Stock Highlight: Central Garden & Pet Co. (CENT) - Central Garden & Pet Co. is positioned as a leading player in the U.S. pet supplies and lawn and garden supplies market, driven by product innovation and customer service [12] - CENT holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong potential [12] - The company has a Growth Style Score of B, with an expected year-over-year earnings growth of 8.4% for the current fiscal year, and a Zacks Consensus Estimate of $2.32 per share [13] - CENT has demonstrated an average earnings surprise of 208.7%, making it a strong candidate for growth investors [13]

Group 1: Central Garden & Pet Company (CENT) - Central Garden & Pet Company operates in the gardening and pet supplies sector and has a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4.5% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 16.57, which is lower than the S&P 500's P/E of 21.79, and it possesses a Value Score of A [1] Group 2: Enova International, Inc. (ENVA) - Enova International, Inc. is a technology and analytics company that provides online financial services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.8% over the last 60 days [2] - Enova has a price-to-earnings ratio (P/E) of 10.14, which is lower than the industry average of 15.30, and it possesses a Value Score of A [2]

Financial Performance - Total net sales for the three months ended December 28, 2024, were $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.4%[93] - Operating income for the total company was $28.0 million for the three months ended December 28, 2024, compared to $8.4 million in the prior year, indicating a significant improvement[93] - Net income attributable to Central Garden & Pet Company was $14.0 million for the three months ended December 28, 2024, compared to $430,000 for the same period in 2023, reflecting a substantial increase[93] - Basic earnings per share (EPS) for the three months ended December 28, 2024, was $0.22, compared to $0.01 for the same period in 2023[89] - Total revenue for the three months ended December 28, 2024, was $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.0%[95] Segment Performance - The Pet segment generated net sales of $427.5 million, up from $409.2 million, while the Garden segment saw sales increase from $225.3 million to $229.0 million[93] - The Pet Segment generated $427.5 million in revenue for the three months ended December 28, 2024, compared to $409.2 million in the same period of 2023, reflecting a growth of about 4.0%[95] - The Garden Segment reported revenues of $228.9 million for the three months ended December 28, 2024, up from $225.3 million in the same period of 2023, indicating a growth of approximately 1.6%[95] Cash and Liquidity - The company reported cash and cash equivalents of $618,020 thousand as of December 28, 2024, compared to $341,419 thousand on December 30, 2023, indicating a significant increase of 81.0%[36] - The company’s total cash, cash equivalents, and restricted cash reached $632,669 thousand as of December 28, 2024, compared to $355,619 thousand on December 30, 2023, an increase of 77.7%[36] - Restricted cash amounted to $14,649 thousand as of December 28, 2024, slightly up from $14,200 thousand on December 30, 2023[36] - As of December 28, 2024, the company had no borrowings outstanding under the Credit Facility, with a total net availability of approximately $50 million[81] - The company maintained compliance with all financial covenants under the Credit Facility as of December 28, 2024[83] Debt and Financing - The Company has long-term debt with a net carrying value of $1,190.1 million as of December 28, 2024, slightly increasing from $1,188.2 million as of December 30, 2023[66] - The Company issued $400 million of 5.125% senior notes due April 2031, with proceeds used to repay outstanding borrowings and for general corporate purposes[68] - The Company incurred approximately $6 million in debt issuance costs related to the 2031 Notes, which are being amortized over the term of the notes[69] - The company incurred approximately $2.4 million in debt issuance costs related to the Credit Facility, which are being amortized over the term of the facility[82] Assets and Inventory - Total assets as of December 28, 2024, were $3.54 billion, an increase from $3.42 billion in the prior year[93] - Total inventories, net, decreased to $815,782 thousand as of December 28, 2024, from $948,398 thousand on December 30, 2023, reflecting a decline of 14.0%[57] - The company reported finished goods inventory of $403,268 thousand as of December 28, 2024, down from $468,547 thousand on December 30, 2023, a decrease of 13.9%[58] - The Company recorded total other intangible assets, net of $465.9 million as of December 28, 2024, compared to $489.1 million as of December 30, 2023, reflecting a decrease of approximately 4.9%[62] Acquisitions and Goodwill - The company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet product segment and increasing eCommerce capabilities[54] - The company’s goodwill from the TDBBS acquisition was recorded at $4,925 thousand, contributing to the overall net assets acquired[56] - The Company evaluated goodwill for impairment and determined that no impairment testing was necessary for the three months ended December 28, 2024[63] - The Company has recorded a goodwill impairment charge for the three months ended December 28, 2024, and December 30, 2023, but specific amounts were not disclosed[5] Risk Management and Compliance - The company has not experienced any losses from cash accounts exceeding federally insured limits, indicating effective credit risk management[36] - The Company has not experienced any product recalls that would materially affect its financial position or operations[98] - Management believes that ongoing legal proceedings will not have a material impact on the Company's consolidated financial statements[97] - The Company continues to pursue defenses in ongoing litigation and believes it will prevail on the merits regarding the head start damages issue[97] - The Company has not identified any material changes in exposure to market risk since the last annual report[154] - The Company is actively monitoring product liability issues but has not faced any significant challenges that would impact financial results[98] Internal Controls - There have been no changes in internal control over financial reporting that materially affected the Company during the first quarter of 2025[155] - The Company’s disclosure controls and procedures were deemed effective as of December 28, 2024[154]

Core Insights - Central Garden & Pet Company (CENT) reported strong first-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][2] Financial Performance - The company achieved earnings of 21 cents per share, surpassing the Zacks Consensus Estimate of a loss of 3 cents, and increased from 1 cent per share in the prior-year period [3] - Consolidated net sales reached $656.4 million, exceeding the Zacks Consensus Estimate of $630 million, and reflecting a 3% increase from $634.5 million in the previous year [4] - Gross profit was $196 million, up from $178.8 million year-over-year, with a gross margin expansion of 160 basis points to 29.8% due to productivity improvements and moderating inflation [5] - SG&A expenses decreased to $167.7 million from $170.4 million in the prior year, with a percentage of net sales dropping 140 basis points to 25.5% [6] - Operating income rose to $28 million from $8.4 million in the previous year, with an operating margin expansion of 300 basis points to 4.3% [6] - Adjusted EBITDA was reported at $55.4 million compared to $37 million in the prior-year period [7] Segment Performance - The Pet segment generated net sales of $427 million, a 4% increase, driven by order shifts and promotional activities [8] - Operating income for the Pet segment was $51 million, up from $43 million, with an adjusted operating margin of 12%, an increase of 140 basis points [9] - The Garden segment reported net sales of $229 million, a 2% increase, benefiting from favorable weather and order shifts [9] - The Garden segment's operating income improved to $2 million from an operating loss of $9 million, with an operating margin increase of 500 basis points to 1.1% [10] Financial Health - At the end of the quarter, the company had cash and cash equivalents of $618 million, long-term debt of $1,190.3 million, and shareholders' equity of $1,519.1 million [11] - The company repurchased approximately 1.68 million shares, totaling $52 million, and expects capital expenditures for fiscal 2025 to be between $60 million and $70 million [12] Outlook - Central Garden & Pet estimates adjusted earnings for fiscal 2025 to be $2.20 per share or more, considering various economic factors and challenges in the retail market [13] - The company anticipates a softer second quarter of fiscal 2025 compared to the previous year [14]

Q1 FY2025 Investor Presentation 2.5.2025 Key Themes Niko Lahanas, CEO Financials, Segments & Outlook Brad Smith, CFO Management Q&A Niko Lahanas, Brad Smith, J.D. Walker, John Hanson Q1 FY25 Investor Presentation 2 Niko Lahanas CEO Forward-looking Statements Q1 FY25 Investor Presentation The statements contained in this presentation which are not historical facts, including statements concerning productivity initiatives and earnings guidance for fiscal 2025, are forward-looking statements that are subject t ...

Core Viewpoint - Central Garden (CENT) reported quarterly earnings of $0.21 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, marking an 800% earnings surprise [1][2]. Financial Performance - The company achieved revenues of $656.44 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.15% and showing an increase from $634.53 million year-over-year [3]. - Over the last four quarters, Central Garden has consistently surpassed consensus EPS estimates four times and revenue estimates two times [2][3]. Stock Performance and Outlook - Central Garden shares have declined approximately 5.2% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [4]. - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $904.71 million, and for the current fiscal year, it is $2.22 on revenues of $3.23 billion [8]. Industry Context - The Consumer Products - Discretionary industry, to which Central Garden belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [9]. - The performance of Central Garden's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9].

Operator Ladies and gentlemen, thank you for standing by. Welcome to Garden & Pets Fiscal 2025 First Quarter Earnings Call. My name is Julian, and I will be your operator, conference operator for today. At this time all participants are in a listen-only mode. Following prepared remarks, we will hold a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the call over to Friederike Edelmann, Vic ...

Exhibit 99.1 CENTRAL GARDEN & PET ANNOUNCES Q1 FISCAL 2025 FINANCIAL RESULTS Fiscal 2025 Q1 net sales of $656 million vs. $635 million in the prior year Fiscal 2025 Q1 EPS of $0.21 vs. $0.01 a year ago Maintains outlook for fiscal 2025 non-GAAP EPS of $2.20 or better WALNUT CREEK, Calif. – Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) ("Central"), a market leader in the pet and garden industries, today announced results for its fiscal 2025 first quarter ended December 28, 2024. "The fiscal yea ...

Central Garden & Pet Company (CENT) is likely to register a decrease in both top and bottom lines when it reports first-quarter fiscal 2025 on Feb. 5. The Zacks Consensus Estimate for revenues is pegged at $630.3 million, which indicates a decline of 0.7% from the prior-year reported figure. The consensus mark for the bottom line has remained unchanged in the past 30 days and is pegged at a loss of 3 cents, which indicates a sharp decline from earnings of 1 cent reported in the year-ago period. Central Gard ...

Central Garden & Pet Company (CENT) has seen its stock price plummet 14% in a month against the industry’s 0.5% growth. This decline can be traced to tough broader market dynamics and specific challenges faced by the company. Investors are currently divided on whether the stock is set for a further decline or is on the verge of a recovery.CENT Stock One Month Performance Image Source: Zacks Investment Research After a 2.5% decline during Friday’s session, the stock is now trading at $35.15, inching closer t ...