Thursday, branded gardening products maker Central Garden & Pet Co. (CENT) reported a turn to a profit in the fourth quarter from a year ago, on lower expenses notwithstanding a decline in sales. Results for the quarter were also helped by the absence of goodwill and other impairments of $27.76 million recorded last year.
Central Garden reported a fourth quarter profit of $8.0 million, compared to a net loss of $13.9 million in the year-ago period. On a per share basis, net income was $0.12, compared to a net loss of $0.20 in the prior-year period.
Analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude one-time items.
Results for the prior-year quarter included a non-cash, pre-tax charge related to goodwill and other impairments of $27.76 million. In the fourth-quarter, cost of goods sold decreased to $246.93 million from $299.72 million in the prior-year period.
Central Garden net sales fell 12% to $363.17 million from $413.97 in the year-ago period. Analysts expected fourth-quarter revenue of $403.74 million.
Segment-wise, sales of branded products declined 12% to $311 million and sales of other manufacturers' products decreased 14% to $52 million in the fourth-quarter, compared to the year-ago period.
Expenses declined to $96.31 million from $98.80 million, while interest expense was $4.86 million, compared to $7.69 million in the year-earlier quarter.
For the full-year, Central Garden reported a profit of $65.9 million, compared to a net loss of $267.3 million last year. Earnings per share was $0.94, compared to a loss of $3.76 last year. Analysts expected full-year earnings of $0.94 per share.
Last year's results include a non-cash, pre-tax charge of $430 million related to the impairment of goodwill, other intangibles and long-lived assets and a pre-tax gain of $11.1 million related to the sale of properties and legal settlement proceeds.
Central Garden net sales declined 5% to $1.61 billion from $1.70 billion last year. Analysts expected full-year revenue of $1.65 billion.
CENT closed Thursday's regular trading session at $10.06, down $0.18, on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.