Core Viewpoint - Central Garden & Pet reported a narrower-than-expected loss in Q4 fiscal 2025, with both revenue and earnings exceeding estimates, indicating operational momentum and a strong fiscal year performance [2][3]. Financial Performance - The company posted an adjusted loss of 9 cents per share, better than the Zacks Consensus Estimate of a loss of 20 cents, and improved from an 18-cent loss in the prior year [3]. - Net sales reached $678.2 million, a 1% increase year-over-year, surpassing the Zacks Consensus Estimate of $666 million, driven by strong performance in the Garden segment [4]. - Gross profit increased to $196.5 million from $169 million a year ago, with gross margin expanding 380 basis points to 29% [5]. - The operating loss was $6.4 million, significantly improved from a $32.4 million loss reported a year earlier [6]. Segment Performance - The Pet segment generated $428 million in sales, down 2% year-over-year, impacted by the planned closure of U.K. operations [7]. - The Garden segment saw a 7% increase in net sales to $250 million, with strong performance in various product categories [9]. Financial Health - The company ended the quarter with cash and cash equivalents of $882.5 million and long-term debt of $1,191.6 million, resulting in a gross leverage ratio of 2.8 [12]. - Cash provided by operating activities was $332.5 million in fiscal 2025, compared to $394.9 million the previous year [12]. Outlook - Central Garden & Pet anticipates adjusted earnings of $2.70 per share or better for fiscal 2026, supported by margin discipline and cost efficiencies [14]. - For Q1 fiscal 2026, the company projects earnings in the range of 10-15 cents per share, down from 21 cents reported in the prior year [15]. - The consensus estimate has seen a downward trend, with a shift of -46.97% in recent estimates [16].

Core Insights - Central Garden & Pet Company (CENT) reported its fourth-quarter fiscal 2025 results, with both revenue and earnings exceeding Zacks Consensus Estimates and showing improvement from the previous year, marking a record fiscal year for the company [1][2][10] Financial Performance - The company posted an adjusted loss of 9 cents per share, better than the expected loss of 20 cents and an improvement from the 18-cent loss in the prior-year quarter [2] - Net sales reached $678.2 million, a 1% increase year over year, surpassing the Zacks Consensus Estimate of $666 million, driven by strong performance in the Garden segment [3] - Gross profit increased to $196.5 million from $169 million a year ago, with gross margin expanding by 380 basis points to 29% [4] - Adjusted EBITDA rose to $25.7 million, up from $16.8 million in the previous year [5] Segment Performance - The Pet segment generated $428 million in sales, down 2% year over year, impacted by the closure of U.K. operations and reduced sales of lower-margin products, although it gained market share in consumables [7] - The Garden segment saw a 7% increase in net sales to $250 million, benefiting from favorable weather and an extended selling season, with e-commerce demand growing significantly [9] Cost and Expenses - Adjusted SG&A expenses rose 7% to $198.1 million, representing 29.2% of net sales, driven by productivity investments and higher spending on innovation [6] Financial Health - The company ended the quarter with cash and cash equivalents of $882.5 million and long-term debt of $1,191.6 million, with a gross leverage ratio of 2.8 [12] Outlook - For fiscal 2026, the company anticipates adjusted earnings of $2.70 per share or better, supported by margin discipline and strategic investments in innovation and digital technology [14] - For the first quarter of fiscal 2026, earnings are projected to be between 10-15 cents per share, down from 21 cents in the prior year [15]