We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Scotts Miracle-Gro (SMG) Q2 Earnings & Sales Top Estimates
Read MoreHide Full Article
The Scotts Miracle-Gro Company (SMG - Free Report) reported a second-quarter fiscal 2024 (ended Mar 30, 2024) profit of $157.5 million or $2.74 per share, roughly 44% higher than $109.4 million or $1.94 per share in the prior-year quarter.
Barring one-time items, the adjusted earnings were $3.69 per share compared with $3.78 a year ago, topping the Zacks Consensus Estimate of $3.35.
The company’s net sales in the fiscal second quarter were $1,525.4 million, which beat the Zacks Consensus Estimate of $1,498.3 million. Net sales decreased around 0.4% year over year, primarily due to lower sales in the Hawthorne segment partly resulting from the weakness in the hydroponic industry.
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
In the fiscal second quarter, net sales in the U.S. Consumer division were up 2% year over year to $1,379.8 million, beating our estimate of $1,300 million. The segment recorded a profit of $385.7 million, down 3% year over year.
Net sales in the Hawthorne segment tumbled 28% year over year to $66.4 million in the reported quarter, missing our estimate of $94.5 million. The segment reported a loss of $3.4 million. The figure was narrower than the year-ago loss of $16.8 million.
Net sales in the other segment fell 3% year over year to $79.2 million, missing our estimate of $89.6 million. The segment reported a profit of $6.4 million, down 56%.
Financials
At the end of the fiscal second quarter, SMG had cash and cash equivalents of $65.1 million, up around 160.4% year over year. Long-term debt decreased roughly 12% to $2,760.5 million.
Outlook
The company reiterates its non-GAAP fiscal 2024 guidance. Its key goal remains to generate $575 million in adjusted EBITDA and $560 million in free cash flow to restore a healthy balance sheet with significant improvements in leverage and working capital.
Price Performance
SMG’s shares are down 2.8% over a year compared with an 18.1% fall recorded by its industry.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 114.7% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Scotts Miracle-Gro (SMG) Q2 Earnings & Sales Top Estimates
The Scotts Miracle-Gro Company (SMG - Free Report) reported a second-quarter fiscal 2024 (ended Mar 30, 2024) profit of $157.5 million or $2.74 per share, roughly 44% higher than $109.4 million or $1.94 per share in the prior-year quarter.
Barring one-time items, the adjusted earnings were $3.69 per share compared with $3.78 a year ago, topping the Zacks Consensus Estimate of $3.35.
The company’s net sales in the fiscal second quarter were $1,525.4 million, which beat the Zacks Consensus Estimate of $1,498.3 million. Net sales decreased around 0.4% year over year, primarily due to lower sales in the Hawthorne segment partly resulting from the weakness in the hydroponic industry.
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
The Scotts Miracle-Gro Company price-consensus-eps-surprise-chart | The Scotts Miracle-Gro Company Quote
Segment Highlights
In the fiscal second quarter, net sales in the U.S. Consumer division were up 2% year over year to $1,379.8 million, beating our estimate of $1,300 million. The segment recorded a profit of $385.7 million, down 3% year over year.
Net sales in the Hawthorne segment tumbled 28% year over year to $66.4 million in the reported quarter, missing our estimate of $94.5 million. The segment reported a loss of $3.4 million. The figure was narrower than the year-ago loss of $16.8 million.
Net sales in the other segment fell 3% year over year to $79.2 million, missing our estimate of $89.6 million. The segment reported a profit of $6.4 million, down 56%.
Financials
At the end of the fiscal second quarter, SMG had cash and cash equivalents of $65.1 million, up around 160.4% year over year. Long-term debt decreased roughly 12% to $2,760.5 million.
Outlook
The company reiterates its non-GAAP fiscal 2024 guidance. Its key goal remains to generate $575 million in adjusted EBITDA and $560 million in free cash flow to restore a healthy balance sheet with significant improvements in leverage and working capital.
Price Performance
SMG’s shares are down 2.8% over a year compared with an 18.1% fall recorded by its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
SMG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 114.7% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.