Central GardenPet A 2025 Q3 Earnings Strong Earnings as Net Income Rises 18.6%

Central Garden&Pet A (CENTA) reported its fiscal 2025 Q3 earnings on Aug 08, 2025. The company delivered improved earnings results, with earnings per share rising 26.4% year-over-year. While revenue declined slightly, the CEO expressed confidence in the company’s operational execution and long-term growth potential.

Revenue
Total revenue for Central Garden&Pet A fell 3.6% to $960.91 million in 2025 Q3, compared to $996.35 million in the same period of 2024. The Pet segment generated $492.55 million, reflecting steady demand in core categories such as pet food, while the Garden segment reported $468.36 million in sales. Corporate revenue remained at $0, and together with segment contributions, the company recorded total net sales of $960.91 million.

Earnings/Net Income
Earnings per share increased 26.4% to $1.53 in 2025 Q3 from $1.21 in 2024 Q3, driven by improved profitability. Net income for the quarter rose 18.6% to $95.41 million from $80.48 million in the prior-year period. The strong earnings performance highlights the company’s ability to maintain margins despite a slight drop in revenue.

Price Action
The stock price of Central Garden&Pet A declined 11.42% during the latest trading day, 10.64% for the week, and 0.78% month-to-date, reflecting mixed investor sentiment following the earnings release.

Post-Earnings Price Action Review
A trading strategy of buying CENTA following a positive earnings surprise and holding for 30 days underperformed significantly, delivering a return of -24.76% compared to the benchmark’s 72.08%. The strategy did not experience drawdowns during the backtest but exhibited a low Sharpe ratio of -0.26 and a volatility of 22.38%, suggesting a high-risk, low-reward profile.

CEO Commentary
CEO Scott A. Sanborn emphasized the company’s strong performance in Q3, with sustained momentum across pet food and lawn & garden categories. He credited favorable consumer demand and recent supply chain optimizations for the results. Looking ahead, Sanborn highlighted strategic investments in digital transformation, product innovation, and expanded distribution to support long-term leadership in premium pet care and outdoor living markets.

Guidance
The CEO expressed cautious optimism and reiterated the company’s confidence in maintaining strong revenue and profitability metrics in the near term. While no specific numerical guidance was provided, the Q3 results of $960.91 million in revenue and $1.53 EPS reinforce the company’s current positive trajectory.

Additional News
Recent international headlines include the Trump administration’s decision to exclude illegal immigrants from the U.S. census and the nomination of a key economic adviser to the Federal Reserve Board. In Asia, India pushed back after the U.S. doubled levies on its goods, while a Chinese film on the Nanjing Massacre made its U.S. debut. Diplomatic tensions persist in the Middle East, with rifts emerging over Gaza plans ahead of a critical cabinet meeting.