Financial Performance - Net sales reached $834 million, a decrease of 7% compared to the previous year (PY)[3] - Non-GAAP operating income was $99 million, in line with the previous year[3] - Non-GAAP EPS was $1.04, an increase of $0.05 compared to the previous year[9] Segment Performance - **Pet Segment:** Net sales were $454 million, a decrease of 6% compared to the previous year[5]; Non-GAAP operating income was $66 million, an increase of 5% compared to the previous year[7] - **Garden Segment:** Net sales were $380 million, a decrease of 10% compared to the previous year[10]; Operating income was $59 million, an increase of 3% compared to the previous year[10] Key Highlights - Continued execution of the Cost & Simplicity program enhances efficiency[11] - Further eCommerce growth, fueled by centralized retail media efforts, new product introductions and improved content[11] - Record sales and online share leadership in Wild Bird[11] - Held market share in pet and garden with gains across several key categories including Dog Chews, Rawhide, Wild Bird and Grass Seed[11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score tracks price trends to capitalize on upward or downward movements [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: 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, emphasizing product innovation and customer service [11] - Currently rated 3 (Hold) by Zacks, CENT has a VGM Score of A and a Momentum Style Score of A, indicating strong potential [11][12] - CENT's shares have increased by 3.4% over the past four weeks, with positive earnings estimate revisions for fiscal 2025 [12] - The Zacks Consensus Estimate for CENT's earnings has risen by $0.05 to $2.37 per share, with an impressive average earnings surprise of 208.7% [12]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENT) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the pet supply and lawn and garden markets, which are currently attractive for growth investors [3] Group 2: Earnings Growth - Central Garden has a historical EPS growth rate of 5.1%, but projected EPS growth for this year is expected to be 10.7%, significantly higher than the industry average of 3.2% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Central Garden is 8.7%, surpassing the industry average of 4.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.4%, compared to the industry average of 9.3% [6] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Central Garden, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Investment Positioning - Central Garden has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Insights - Central Garden & Pet Company (CENT) is a resilient player in the pet consumables and garden supplies market, demonstrating adaptability and innovation despite market changes [1][3] - The company is well-positioned for sustainable growth due to a clear strategic vision, disciplined cost management, and a growing digital presence [2] Growth Strategy - CENT is strategically positioning itself as a dominant player in the U.S. pet and lawn and garden supplies market, leveraging distinctive packaging, effective point-of-sale displays, robust logistics, and exceptional customer service [3] - The Central-to-Home strategy is gaining traction through enhanced digital capabilities, optimized supply chain, and elevated marketing efforts [3] Product Innovation - The company is investing in a robust pipeline of new products across its pet and garden segments, focusing on high-quality pet consumables and sustainable garden solutions [4] Operational Efficiency - CENT's multi-year Cost and Simplicity program is driving operational efficiency through Stock Keeping Unit rationalization, facility consolidations, and enhanced tech integration [5] - Adjusted gross margin expanded by 160 basis points to 29.8% in Q1 of fiscal 2025, with SG&A expenses falling by 2% year over year and operating margins increasing by 300 basis points to 4.3% [6] E-Commerce Performance - In Q1 of fiscal 2025, sales in the Pet segment rose by 4% to $427 million, with e-commerce representing 28% of pet segment revenues, growing at 6% year over year [7] - The Garden segment also saw double-digit e-commerce growth, with revenues growing by 2% to $229 million, driven by strong sales in bird feed and fertilizer [8] Stock Performance - CENT shares have decreased by 4.3% in the past month, but have outperformed the industry's decline of 5.3% [9] - Currently, CENT is trading at a forward 12-month price-to-sales multiple of 0.71X, indicating it may be undervalued relative to its earnings potential [11] Strategic Focus - Despite near-term challenges such as tariffs and macroeconomic uncertainty, CENT's focus on innovation, cost optimization, and digital expansion positions it for sustained long-term growth [13]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][8] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][9] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] - The Momentum Score assists investors in capitalizing on price trends by analyzing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential [6] - The Zacks Rank utilizes earnings estimate revisions to simplify the process of building a successful investment portfolio, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] - Central Garden & Pet Co. (CENT) is highlighted as a strong investment opportunity, holding a 1 (Strong Buy) Zacks Rank and a VGM Score of A, with key growth drivers including product innovation and customer service [11] - CENT has a Momentum Style Score of B, with a 4.4% increase in shares over the past four weeks and an upward revision of earnings estimates, indicating strong potential for investors [12]

Company Overview - Central Garden & Pet is focusing on growth through innovation, e-commerce expansion, and cost efficiencies in its Pet and Garden segments [2] - The company is implementing a Cost and Simplicity program to streamline operations and is investing in digital capabilities and higher-margin consumables to enhance profitability [2] Financial Performance - Central Garden is expected to report quarterly earnings of $0.95 per share, reflecting a year-over-year decrease of 4% [3] - Revenue for the upcoming quarter is projected to be $878.1 million, which is a decline of 2.4% compared to the same quarter last year [3] Stock Performance - Central Garden shares increased by 5.7% in the last trading session, closing at $35.58, following a 9.5% loss over the previous four weeks [1] - The consensus EPS estimate for Central Garden has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates [5] - The stock currently holds a Zacks Rank of 1 (Strong Buy), suggesting positive sentiment among analysts [5] Industry Context - Central Garden operates within the Zacks Consumer Products - Discretionary industry, which includes other companies like The RealReal [5] - The RealReal's consensus EPS estimate has decreased by 16.7% over the past month, contrasting with Central Garden's stable estimates [6]

Company Overview - Central Garden & Pet Co. is focused on product innovation and aims to strengthen its position in the U.S. pet supplies and lawn and garden supplies market [12] - The company utilizes unique packaging, point-of-sale displays, logistic capabilities, and high customer service levels as key growth catalysts [12] Investment Ratings - Central Garden has a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, indicating strong potential for investment [12] - The company is also a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 10.8% for the current fiscal year [13] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.15 to $2.37 per share [13] - Central Garden boasts an impressive average earnings surprise of 208.7%, highlighting its ability to exceed earnings expectations [13]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging [1] Group 1: Company Overview - Central Garden (CENT) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the pet supply and lawn and garden markets, making it a relevant choice for growth investors [3] Group 2: Earnings Growth - Central Garden has a historical EPS growth rate of 5.1%, but projected EPS growth for this year is expected to be 10.6%, surpassing the industry average of 8.6% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Central Garden is currently at 8.7%, significantly higher than the industry average of 1.8% [6] - Over the past 3-5 years, the company's annualized cash flow growth rate has been 11.4%, compared to the industry average of 3.7% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Central Garden, with the Zacks Consensus Estimate for the current year increasing by 6.8% over the past month [9] Group 5: Investment Potential - Central Garden has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer and a solid choice for growth investors [11]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to downward earnings outlooks [11] Company Spotlight: 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 investment potential [12][14] - The company is projected to achieve year-over-year earnings growth of 10.8% for the current fiscal year, with recent earnings estimates revised upward [13]

Core Insights - The investment approach is centered on fundamental analysis, focusing on companies with a strong competitive advantage, consistent free cash flow growth, and solid financial performance [1] - The philosophy emphasizes long-term investing over short-term trading strategies, aiming to unlock value through a balanced market perspective [1] - The goal is to provide insightful and actionable advice on both undervalued stocks with growth potential and overvalued stocks to avoid [1] Company and Industry Analysis - The analyst has a background in business and economics, which supports their investment analysis and strategies [1] - The contribution to Seeking Alpha is viewed as a way to engage with a community that values deep analytical insights into the market [1] - The analyst currently works at a local brokerage firm, indicating practical experience in the financial sector [1]