UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Central Garden & Pet Company Delaware 001-33268 68-0275553 (Commission File Number) (I.R.S. Employer Identification No.) 1340 Treat Blvd., Suite 600, Walnut ...

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Central Garden (CENTA) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +16.42%. A quarter ago, it was expected that this pet and lawn products maker would post earnings of $0.94 per share when it actually produced earnings of $1.04, delivering a surprise of +10.64%.Over the last four ...

Central Garden (CENTA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant To Section 13 of 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) Central Garden & Pet Company (Exact name of registrant as specified in its charter) Delaware 001-33268 68-0275553 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 1340 Treat Boulevard, Suite 600, Walnut Creek, California 94597 (Address of ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, and cash flows, with detailed accounting policy notes Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 29, 2025 | March 30, 2024 | September 28, 2024 | | :--- | :--- | :--- | :--- | | **Total current assets** | $1,975,253 | $1,850,618 | $1,886,806 | | Inventories, net | $824,281 | $914,352 | $757,943 | | **Total Assets** | **$3,629,617** | **$3,540,018** | **$3,553,439** | | **Total current liabilities** | $597,651 | $556,490 | $515,384 | | Long-term debt | $1,190,724 | $1,188,955 | $1,189,809 | | **Total Equity** | **$1,543,404** | **$1,512,167** | **$1,557,545** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended Mar 29, 2025 | Three Months Ended Mar 30, 2024 | Six Months Ended Mar 29, 2025 | Six Months Ended Mar 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $833,537 | $900,090 | $1,489,973 | $1,534,623 | | Gross profit | $273,083 | $278,880 | $468,782 | $457,725 | | Operating income | $93,324 | $93,447 | $121,316 | $101,859 | | Net income attributable to Central | $63,633 | $61,987 | $77,642 | $62,417 | | Diluted EPS | $0.98 | $0.93 | $1.19 | $0.93 | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended, in thousands) | Cash Flow Activity | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net cash used by operating activities | $(115,695) | $(94,302) | | Net cash used in investing activities | $(20,203) | $(80,286) | | Net cash used by financing activities | $(99,724) | $(13,171) | | **Net decrease in cash** | **$(237,066)** | **$(187,344)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, including the TDBBS acquisition, inventory and intangible asset breakdowns, $1.2 billion in long-term debt, segment performance, and an update on the Nite Glow legal contingency - On November 3, 2023, the Company acquired TDBBS, LLC, a provider of premium natural dog chews and treats, for approximately **$60 million**, resulting in **$23 million** in intangible assets and **$5 million** in goodwill[54](index=54&type=chunk) - The company has three series of senior notes outstanding, totaling **$1.2 billion** in principal: **$300 million** at 5.125% due 2028, **$500 million** at 4.125% due 2030, and **$400 million** at 4.125% due 2031[63](index=63&type=chunk) Segment Operating Income (Six Months Ended, in thousands) | Segment | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Pet segment | $111,871 | $106,047 | | Garden segment | $61,154 | $48,180 | | Corporate | $(51,709) | $(52,368) | | **Total operating income** | **$121,316** | **$101,859** | - A legal dispute with Nite Glow regarding a patent, breach of contract, and misappropriation of confidential information is ongoing; a retrial on damages concluded in March 2024, with no decision issued, and the company believes the final resolution will not have a material impact[95](index=95&type=chunk) [Item 2. MD&A of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a 7.4% Q2 FY2025 net sales decrease, improved gross margin, a 2.9% six-month net sales decrease, and a 19.1% operating income increase, alongside liquidity, capital resources, debt, and stock repurchase details [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q2 FY2025 net sales decreased **7.4%** to **$833.5 million** due to order timing and weather, while gross margin improved; six-month net sales decreased **2.9%** to **$1.49 billion**, but operating income rose **19.1%** to **$121.3 million** Q2 FY2025 vs Q2 FY2024 Performance (in millions) | Metric | Q2 FY2025 | Q2 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $833.5 | $900.1 | -7.4% | | Gross Profit | $273.1 | $278.9 | -2.1% | | Operating Income | $93.3 | $93.4 | -0.1% | | Diluted EPS | $0.98 | $0.93 | +5.4% | - The Q2 sales decline was driven by the timing of customer orders shifting sales into Q1, continued weak demand for pet durables (outdoor cushions, pet beds, aquatics), and a delayed start to the garden season due to weather[106](index=106&type=chunk) Six Months FY2025 vs FY2024 Performance (in millions) | Metric | Six Months FY2025 | Six Months FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $1,490.0 | $1,535.0 | -2.9% | | Gross Profit | $468.8 | $457.7 | +2.4% | | Operating Income | $121.3 | $101.8 | +19.1% | | Diluted EPS | $1.19 | $0.93 | +28.0% | - In March 2025, the company decided to wind-down its U.K. operations, incurring **$5.3 million** in one-time costs during the quarter[103](index=103&type=chunk) [Use of Non-GAAP Financial Measures](index=24&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like adjusted EBITDA and non-GAAP net income, excluding one-time charges, with Q2 2025 non-GAAP net income at **$67.7 million** ($1.04 diluted EPS) and six-month non-GAAP net income at **$81.7 million** ($1.25 diluted EPS) GAAP to Non-GAAP Net Income Reconciliation (in thousands, except per share) | | Three Months Ended Mar 29, 2025 | Six Months Ended Mar 29, 2025 | | :--- | :--- | :--- | | GAAP net income | $63,633 | $77,642 | | Facility closures | $5,339 | $5,339 | | Tax effect | $(1,255) | $(1,255) | | **Non-GAAP net income** | **$67,717** | **$81,726** | | GAAP diluted EPS | $0.98 | $1.19 | | **Non-GAAP diluted EPS** | **$1.04** | **$1.25** | - Non-GAAP adjustments for Q2 2025 relate to a **$5.3 million** charge for winding down U.K. operations, while Q2 2024 adjustments related to a **$5.3 million** charge for closing a California facility and consolidating distribution[135](index=135&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is managed through operations and a **$750 million** credit facility with **$706 million** available, as net cash used by operating activities increased to **$115.7 million**, and stock repurchases significantly rose to **$93.4 million**, while total debt remained stable at **$1.2 billion** - Net cash used by operating activities increased by **$21.4 million** year-over-year for the six-month period, primarily due to changes in working capital[147](index=147&type=chunk) - Cash used in financing activities increased to **$99.7 million** from **$13.2 million** year-over-year for the six-month period, driven by significant stock repurchases[149](index=149&type=chunk) - During the first six months of FY2025, the company repurchased approximately **2.1 million** shares of CENTA stock for **$63.2 million** and **0.9 million** shares of CENT stock for **$30.2 million**[149](index=149&type=chunk) - As of March 29, 2025, total debt was **$1,190.8 million**, and net availability under the Credit Facility was approximately **$706 million**[153](index=153&type=chunk)[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure have occurred since the last Form 10-K filing - No material change in market risk exposure has occurred since the last Form 10-K filing[175](index=175&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 29, 2025, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of the end of the period[176](index=176&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[177](index=177&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) An update on the ongoing Nite Glow Industries litigation notes a retrial on damages concluded in March 2024 with a pending decision, and the company does not expect a material financial impact - The company is involved in a legal proceeding with Nite Glow Industries, initiated in 2012; a retrial on damages for a misappropriation claim concluded in March 2024, but no decision has been issued by the court[179](index=179&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the most recent Form 10-K filing - There have been no material changes to the risk factors disclosed in the most recent Form 10-K[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended March 29, 2025, the company repurchased **1,343,279** shares at an average price of **$33.38**, with approximately **$101.2 million** remaining for future repurchases Equity Repurchases for Quarter Ended March 29, 2025 | Period | Total Shares Purchased | Average Price Paid | Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | Dec 29, 2024 - Feb 1, 2025 | 4,804 | $30.68 | $131,028,000 | | Feb 2, 2025 - Mar 1, 2025 | 181,824 | $32.62 | $131,028,000 | | Mar 2, 2025 - Mar 29, 2025 | 1,156,651 | $33.51 | $101,172,000 | | **Total** | **1,343,279** | **$33.38** | **$101,172,000** | - As of March 29, 2025, the company had **$101 million** of authorization remaining under its 2019 and 2024 Repurchase Authorizations[185](index=185&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended March 29, 2025 - No directors or officers reported any adoption, modification, or termination of a Rule 10b5-1 trading arrangement during the quarter[185](index=185&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications, guarantor subsidiaries, and Inline XBRL financial statements - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and financial data in Inline XBRL format (101, 104)[186](index=186&type=chunk)

Core Insights - Central Garden (CENTA) reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and up from $0.99 per share a year ago, representing an earnings surprise of 10.64% [1] - The company posted revenues of $833.54 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 4.76% and decreased from $900.09 million year-over-year [2] - Central Garden has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $1.01 billion, and for the current fiscal year, it is $2.37 on revenues of $3.23 billion [7] - The estimate revisions trend for Central Garden is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Consumer Products - Discretionary industry, to which Central Garden belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Central Garden's stock performance [5]

[Q2 Fiscal 2025 Financial Results and Outlook](index=1&type=section&id=Q2_Fiscal_2025_Financial_Results_and_Outlook) [Financial Highlights](index=1&type=section&id=Financial_Highlights) In the second quarter of fiscal 2025, Central Garden & Pet experienced a **7%** decrease in net sales to **$834 million**, attributed to softer demand and timing shifts in customer orders, while improving profitability through its Cost and Simplicity program, leading to a **180 basis point** expansion in gross margin to **32.8%** and a **$0.05** increase in both GAAP and non-GAAP EPS to **$0.98** and **$1.04**, respectively Q2 Fiscal 2025 Key Financial Metrics (vs. Q2 Fiscal 2024) | Metric | Q2 FY2025 ($ millions) | Q2 FY2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $834 | $900 | -7% | | Gross Profit | $273 | $279 | -2% | | Gross Margin | 32.8% | 31.0% | +180 bps | | Operating Income | $93 | $93 | 0% | | Operating Margin | 11.2% | 10.4% | +80 bps | | Net Income | $64 | $62 | +3% | | GAAP Diluted EPS | $0.98 | $0.93 | +$0.05 | | Non-GAAP Diluted EPS | $1.04 | $0.99 | +$0.05 | - Profitability improvements were primarily driven by productivity efforts from the company's Cost and Simplicity program, which helped expand gross and operating margins despite lower sales volume[2](index=2&type=chunk)[3](index=3&type=chunk) [Segment Performance](index=2&type=section&id=Segment_Performance) Both the Pet and Garden segments saw sales declines in Q2, with the Pet segment's sales falling **6%** due to order timing and softer demand, and the Garden segment's sales dropping **10%** because of a shift in pre-season orders, unfavorable weather, and product line losses, though both segments improved their operating margins through productivity initiatives [Pet Segment](index=2&type=section&id=Pet_Segment) - Net sales decreased by **6%** to **$454 million**, mainly due to the timing of customer orders shifting to Q1, assortment rationalization, and softer demand in durable pet products[10](index=10&type=chunk) Pet Segment Q2 Financials (vs. Q2 FY2024) | Metric | Q2 FY2025 | Change | | :--- | :--- | :--- | | Net Sales ($ millions) | $454 | -6% | | GAAP Operating Income ($ millions) | $61 | -3% | | GAAP Operating Margin | 13.4% | +40 bps | | Non-GAAP Operating Income ($ millions) | $66 | +5% | | Non-GAAP Operating Margin | 14.5% | +150 bps | | Adjusted EBITDA ($ millions) | $75 | +$2 | [Garden Segment](index=2&type=section&id=Garden_Segment) - Net sales decreased by **10%** to **$380 million**, primarily caused by customers shifting pre-season orders into Q1, a late-breaking spring selling season due to weather, and the loss of two product lines in the third-party distribution business[13](index=13&type=chunk) Garden Segment Q2 Financials (vs. Q2 FY2024) | Metric | Q2 FY2025 | Change | | :--- | :--- | :--- | | Net Sales ($ millions) | $380 | -10% | | GAAP Operating Income ($ millions) | $59 | +3% | | GAAP Operating Margin | 15.5% | +190 bps | | Adjusted EBITDA ($ millions) | $69 | -$4 | [Fiscal 2025 Guidance](index=3&type=section&id=Fiscal_2025_Guidance) Central Garden & Pet reaffirmed its fiscal 2025 outlook, expecting non-GAAP EPS to be **$2.20** or better, considering potential shifts in consumer behavior, retail landscape challenges, and weather variability, while anticipating capital expenditures of approximately **$60 million** for the fiscal year - The company reaffirmed its fiscal 2025 non-GAAP EPS guidance of **$2.20 or better**[20](index=20&type=chunk) - The outlook accounts for macroeconomic uncertainty, challenges in brick-and-mortar retail, and weather variability[20](index=20&type=chunk) - Anticipated capital expenditures for fiscal 2025 are approximately **$60 million**[21](index=21&type=chunk) [Financial Position and Corporate Initiatives](index=2&type=section&id=Financial_Position_and_Corporate_Initiatives) [Liquidity, Debt, and Capital Allocation](index=2&type=section&id=Liquidity_Debt_and_Capital_Allocation) The company maintained a strong liquidity position with a cash balance of **$517 million**, a significant improvement from the prior year driven by earnings and inventory reduction, while total debt remained stable at **$1.2 billion** with a gross leverage ratio of **2.9x**, and actively returned capital to shareholders by repurchasing **$41 million** of stock during the quarter and an additional **$39 million** after the quarter's end - Cash and cash equivalents at quarter-end were **$517 million**, an increase of **$215 million** year-over-year, attributed to earnings and inventory reduction efforts[15](index=15&type=chunk) - Total debt was stable at **$1.2 billion**, and the gross leverage ratio was **2.9x**, in line with the prior-year quarter[16](index=16&type=chunk) - The company repurchased **1.2 million shares** for **$41 million** during Q2 and an additional **1.2 million shares** for **$39 million** through April 30, 2025[17](index=17&type=chunk) [Cost and Simplicity Program](index=3&type=section&id=Cost_and_Simplicity_Program) Central is making significant progress with its multi-year Cost and Simplicity program, aimed at streamlining operations and improving efficiency, with a key action in Q2 being the decision to wind down operations in the United Kingdom and transition to a direct-export model, resulting in initial non-cash charges of **$5.3 million** within the Pet segment - The company is executing a multi-year Cost and Simplicity program to streamline operations across procurement, manufacturing, logistics, and administration[18](index=18&type=chunk) - In Q2, Central began winding down its UK operations to move to a direct-export model, incurring **$5.3 million** in initial costs (**$4.4 million** in COGS, **$0.9 million** in SG&A), all of which was non-cash[19](index=19&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Condensed_Consolidated_Financial_Statements) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed_Consolidated_Balance_Sheets) As of March 29, 2025, total assets were **$3.63 billion**, a slight increase from **$3.54 billion** a year prior, driven by a significant rise in cash and cash equivalents to **$517 million** from **$301 million**, partially offset by a decrease in inventories, while total liabilities remained relatively stable and total equity increased slightly to **$1.54 billion** Selected Balance Sheet Data (in thousands) | Account | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $516,675 | $301,332 | | Inventories, net | $824,281 | $914,352 | | Total current assets | $1,975,253 | $1,850,618 | | Total assets | $3,629,617 | $3,540,018 | | **Liabilities & Equity** | | | | Total current liabilities | $597,651 | $556,490 | | Long-term debt | $1,190,724 | $1,188,955 | | Total liabilities | $2,086,213 | $2,027,851 | | Total equity | $1,543,404 | $1,512,167 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed_Consolidated_Statements_of_Operations) For the three months ended March 29, 2025, net sales decreased **7.4%** to **$833.5 million** compared to the prior-year period, yet cost management led to a higher gross margin (**32.8%** vs **31.0%**), stable operating income of **$93.3 million**, and a **2.7%** increase in net income attributable to the company to **$63.6 million** Consolidated Statement of Operations - Three Months Ended (in thousands) | Account | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net sales | $833,537 | $900,090 | | Gross profit | $273,083 | $278,880 | | Operating income | $93,324 | $93,447 | | Income before income taxes | $84,710 | $81,803 | | Net income attributable to Central | $63,633 | $61,987 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) For the six months ended March 29, 2025, net cash used by operating activities was **$115.7 million**, an increase from **$94.3 million** in the prior year, primarily due to changes in working capital like accounts receivable, while net cash used in investing activities decreased significantly to **$20.2 million** from **$80.3 million**, and financing activities used **$99.7 million**, mainly for stock repurchases Cash Flow Summary - Six Months Ended (in thousands) | Activity | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net cash used by operating activities | $(115,695) | $(94,302) | | Net cash used in investing activities | $(20,203) | $(80,286) | | Net cash used by financing activities | $(99,724) | $(13,171) | | Net decrease in cash | $(237,066) | $(187,344) | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP_Financial_Measures_and_Reconciliations) The company uses non-GAAP measures like non-GAAP net income, non-GAAP operating income, and adjusted EBITDA to supplement GAAP results, arguing they provide a better assessment of ongoing performance by excluding infrequent items, with the primary adjustment for Q2 2025 being a **$5.3 million** charge related to the wind-down of UK operations, resulting in non-GAAP net income of **$67.7 million** compared to GAAP net income of **$63.6 million** - Management uses non-GAAP measures to exclude specific items, such as facility closure costs, to aid in financial planning and performance evaluation[37](index=37&type=chunk)[39](index=39&type=chunk) Q2 Net Income Reconciliation: GAAP to Non-GAAP (in thousands) | Description | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | GAAP net income attributable to Central | $63,633 | $61,987 | | Facility closures | $5,339 | $5,270 | | Tax effect of adjustments | $(1,255) | $(1,233) | | **Non-GAAP net income attributable to Central** | **$67,717** | **$66,024** |

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENTA) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company currently holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - Central Garden's projected EPS growth for the current year is 11.3%, significantly outperforming the industry average of 3.2% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6] - Central Garden's year-over-year cash flow growth stands at 8.7%, exceeding the industry average of 4.5% [6] - 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% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are indicative of potential stock price movements [8] - The current-year earnings estimates for Central Garden have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Conclusion - Central Garden has achieved a Growth Score of B and a Zacks Rank of 2, reflecting positive earnings estimate revisions and strong growth metrics [9] - This combination positions Central Garden as a potential outperformer and a solid choice for growth investors [10]

Group 1 - Central Garden (CENTA) shares have increased by 1.5% over the past four weeks, closing at $32.26, with a mean price target of $41.83 indicating a potential upside of 29.7% [1] - The average price targets from analysts range from a low of $31 to a high of $50, with a standard deviation of $6.31, suggesting variability in estimates [2] - Analysts are optimistic about CENTA's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][10] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.1% over the past month, with one estimate rising and no negative revisions [11] - CENTA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [12] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [12]