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) Q3 Earnings Top, Sales Lag Estimates
Read MoreHide Full Article
The Scotts Miracle-Gro Company (SMG - Free Report) reported a third-quarter fiscal 2024 (ended Jun 29, 2024) profit of $132.1 million or $2.28 per share compared with a profit of $43.7 million or 77 cents per share in the year-ago quarter.
Barring one-time items, the adjusted earnings were $2.31 per share, up from $1.17 a year ago. The figure surpassed the Zacks Consensus Estimate of $1.89.
Net sales increased around 7.5% year over year to $1,202.2 million but missed the consensus mark of $1,203.6 million.
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
In the fiscal third quarter, net sales in the U.S. Consumer division were up 11% year over year to $1,017.5 million. It was lower than our estimate of $1,083.2 million. The segment delivered a profit of $210.3 million, up 69% year over year.
Net sales in the Hawthorne segment tumbled 28% year over year to $67.7 million in the reported quarter. The figure was lower than our estimate of $94.7 million. The segment reported a profit of $3.8 million, up 144% year over year.
Net sales in the other segment increased 7% year over year to $117 million. The segment reported a profit of $11.7 million, up 102%.
Balance Sheet
At the end of the quarter, the company had cash and cash equivalents of $279.9 million, up from $27.4 million a year ago. Long-term debt was $2,436.4 million, down around 7.3%.
Outlook
SMG reiterated its adjusted fiscal 2024 guidance issued in June, with the exception of Hawthorne net sales, which are now expected to be 35-40% lower than the previous year due to progress exiting lower margin distributed brands and a projected decline in its professional horticulture lighting business. The segment continues to anticipate break-even or improved adjusted EBITDA for the full year.
Price Performance
Shares of Scotts Miracle-Gro have gained 35.9% in the past year against a 25.2% decline of the 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 Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. It beat the consensus in the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 9% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 120.3% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Scotts Miracle-Gro (SMG) Q3 Earnings Top, Sales Lag Estimates
The Scotts Miracle-Gro Company (SMG - Free Report) reported a third-quarter fiscal 2024 (ended Jun 29, 2024) profit of $132.1 million or $2.28 per share compared with a profit of $43.7 million or 77 cents per share in the year-ago quarter.
Barring one-time items, the adjusted earnings were $2.31 per share, up from $1.17 a year ago. The figure surpassed the Zacks Consensus Estimate of $1.89.
Net sales increased around 7.5% year over year to $1,202.2 million but missed the consensus mark of $1,203.6 million.
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 Details
In the fiscal third quarter, net sales in the U.S. Consumer division were up 11% year over year to $1,017.5 million. It was lower than our estimate of $1,083.2 million. The segment delivered a profit of $210.3 million, up 69% year over year.
Net sales in the Hawthorne segment tumbled 28% year over year to $67.7 million in the reported quarter. The figure was lower than our estimate of $94.7 million. The segment reported a profit of $3.8 million, up 144% year over year.
Net sales in the other segment increased 7% year over year to $117 million. The segment reported a profit of $11.7 million, up 102%.
Balance Sheet
At the end of the quarter, the company had cash and cash equivalents of $279.9 million, up from $27.4 million a year ago. Long-term debt was $2,436.4 million, down around 7.3%.
Outlook
SMG reiterated its adjusted fiscal 2024 guidance issued in June, with the exception of Hawthorne net sales, which are now expected to be 35-40% lower than the previous year due to progress exiting lower margin distributed brands and a projected decline in its professional horticulture lighting business. The segment continues to anticipate break-even or improved adjusted EBITDA for the full year.
Price Performance
Shares of Scotts Miracle-Gro have gained 35.9% in the past year against a 25.2% decline of the 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 Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. It beat the consensus in the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 9% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 120.3% in the past year.