Central Garden & Pet: Q4 2024 Earnings Beat Expectations

Key Highlights:

* Revenue: $656.4 million (3.5% YoY growth, 4.4% beat)
* EPS (GAAP): $0.21 (significant beat)
* Adjusted EBITDA: $55.44 million (8.4% margin, 73.7% beat)
* Operating Margin: 4.3% (up from 1.3% YoY)
* Free Cash Flow: -$74.93 million (improved from -$79.91 million YoY)

Company Overview:

Central Garden & Pet (CENT) provides pet care, lawn and garden, and pest control products. Their household products are considered stable investments due to their essentiality. The company is focused on eco-friendly and sustainable offerings.

Sales Growth:

Over the past 12 months, CENT's revenue reached $3.22 billion. While they have recognizable products, they are a mid-sized consumer staples company. Their demand has recently weakened, with sales declining by 1.5% annually.

Revenue and Earnings Outlook:

Analysts predict flat revenue growth for CENT over the next 12 months. Earnings are expected to improve with the introduction of new products.

Cash Flow:

CENT has strong cash profitability with a free cash flow margin of 10.5% over the past two years. The company recently burned through $74.93 million of cash, but this is typical for seasonal businesses.

Key Takeaways:

* CENT exceeded analysts' expectations in revenue, EPS, and EBITDA.
* The company's free cash flow margin has expanded over the past year.
* While CENT had a strong quarter, investors should consider the overall valuation and business qualities before making investment decisions.

Read our full research report for a comprehensive analysis of Central Garden & Pet's performance and outlook.