Central Garden Pet 2025 Q3 Earnings Earnings Surge 26.4% Despite Revenue Decline

Central Garden & Pet reported mixed results in Q3 2025, with revenue falling short of prior levels but earnings exceeding expectations. The company’s EPS increased 26.4% year-over-year to $1.53, while net income grew 18.6% to $95.41 million. The CEO reaffirmed confidence in future performance despite no specific quantitative guidance being provided.

Revenue
Central Garden & Pet’s total revenue declined 3.6% year-over-year to $960.91 million in Q3 2025, with the Pet segment contributing $492.55 million and the Garden segment generating $468.36 million. Combined, these segments accounted for all of the company’s net sales, with no corporate revenue reported.

Earnings/Net Income
The company’s profitability continued to strengthen in Q3 2025, with earnings per share rising 26.4% year-over-year to $1.53. Net income also expanded, reaching $95.41 million, a 18.6% increase from the prior year period. These figures indicate strong earnings performance despite the revenue decline.

Price Action
The stock of Central Garden & Pet has experienced a downward trend across multiple timeframes. It fell 12.31% on the latest trading day, 10.08% over the past full trading week, and 2.51% month-to-date.

Post-Earnings Price Action Review
A buy strategy based on the company’s earnings beat and a 30-day holding period yielded an 8.22% return, though it significantly underperformed the market by 77.97%. The strategy’s maximum drawdown was 0.00%, and it maintained a Sharpe ratio of 0.05, reflecting a low-risk profile. However, the modest returns and high volatility highlighted the conservative nature of this approach, with little alpha generation observed.

CEO Commentary
CEO James F. Fink highlighted strong Q3 performance, driven by growth in key product categories and improved operational efficiency. He emphasized the company’s focus on innovation and customer-centric solutions, noting that strategic investments in digital capabilities and supply chain optimization are key to maintaining a competitive edge.

Guidance
The company expects continued growth in FY 2025, with an emphasis on profitability and revenue expansion. Management expressed confidence in outperforming previous guidance, citing strong product momentum and disciplined cost management. Specific quantitative targets were not provided, but the company reaffirmed its commitment to delivering above-historical earnings per share.

Additional News
Recent global developments include India’s response to doubled tariffs, China’s emphasis on stable U.S. relations for global prosperity, and a growing diplomatic focus on the Middle East. Trump’s administration announced key economic appointments, while the U.S. Census Bureau faced new policy changes. In Europe, Portugal extended national alerts due to severe wildfires, and EU pharmaceutical firms braced for U.S. tariff impacts. In Asia, diplomatic tensions over Gaza and a significant political recall vote in Taiwan drew international attention.