We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Q2 Earnings Surpass Estimates, Sales Miss
Read MoreHide Full Article
The Scotts Miracle-Gro Company (SMG - Free Report) reported a second-quarter fiscal 2025 (ended March 29, 2025) profit of $217.5 million or $3.72 per share, roughly 38% higher than $157.5 million or $2.74 per share in the prior-year quarter.
Barring one-time items, the adjusted earnings were $3.98 per share compared with $3.69 a year ago, topping the Zacks Consensus Estimate of $3.95.
The company’s net sales in the fiscal second quarter were $1,421 million, which missed the Zacks Consensus Estimate of $1,498.2 million. Net sales declined around 6.8% year over year. U.S. Consumer sales fell as a result of a colder and slower start to the lawn and garden season, pushing some expected second-quarter sales into the third quarter, as well as due to non-recurring fiscal 2024 net sales of bulk raw materials and AeroGarden products.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
In the fiscal second quarter, net sales in the U.S. Consumer division were down 5% year over year to $1,311.5 million, missing our estimate of $1,373.2 million. The segment recorded a profit of $392.5 million, up 2% year over year.
Net sales in the Hawthorne segment tumbled 51% year over year to $32.7 million in the reported quarter, missing our estimate of $70.4 million. The segment reported a loss of $0.9 million. The figure was narrower than the year-ago loss of $3.4 million.
Net sales in the other segment fell 3% year over year to $76.8 million, beating our estimate of $62.3 million. The segment reported a profit of $9 million, up 41%.
SMG’s Financials
At the end of the fiscal second quarter, SMG had cash and cash equivalents of $16.9 million, down around 74% year over year. Long-term debt decreased roughly 9.7% to $2,493.2 million.
SMG’s Outlook
The company reiterated its previously stated guidance for U.S. Consumer segment net sales, adjusted gross margin, adjusted EBITDA and free cash flow. Given the ongoing uncertainty in the cannabis business, the company is no longer issuing full-year revenue guidance for its Hawthorne segment.
SMG’s Price Performance
SMG’s shares are down 23.7% over a year compared with an 10.1% fall recorded by its industry.
Hawkins is scheduled to report fiscal fourth-quarter results on May 14. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%.
SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average.
Coeur Mining is slated to release first-quarter results on May 7. CDE has a trailing four-quarter earnings surprise of 27.9%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Scotts Miracle-Gro Q2 Earnings Surpass Estimates, Sales Miss
The Scotts Miracle-Gro Company (SMG - Free Report) reported a second-quarter fiscal 2025 (ended March 29, 2025) profit of $217.5 million or $3.72 per share, roughly 38% higher than $157.5 million or $2.74 per share in the prior-year quarter.
Barring one-time items, the adjusted earnings were $3.98 per share compared with $3.69 a year ago, topping the Zacks Consensus Estimate of $3.95.
The company’s net sales in the fiscal second quarter were $1,421 million, which missed the Zacks Consensus Estimate of $1,498.2 million. Net sales declined around 6.8% year over year. U.S. Consumer sales fell as a result of a colder and slower start to the lawn and garden season, pushing some expected second-quarter sales into the third quarter, as well as due to non-recurring fiscal 2024 net sales of bulk raw materials and AeroGarden products.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
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
SMG’s Segment Highlights
In the fiscal second quarter, net sales in the U.S. Consumer division were down 5% year over year to $1,311.5 million, missing our estimate of $1,373.2 million. The segment recorded a profit of $392.5 million, up 2% year over year.
Net sales in the Hawthorne segment tumbled 51% year over year to $32.7 million in the reported quarter, missing our estimate of $70.4 million. The segment reported a loss of $0.9 million. The figure was narrower than the year-ago loss of $3.4 million.
Net sales in the other segment fell 3% year over year to $76.8 million, beating our estimate of $62.3 million. The segment reported a profit of $9 million, up 41%.
SMG’s Financials
At the end of the fiscal second quarter, SMG had cash and cash equivalents of $16.9 million, down around 74% year over year. Long-term debt decreased roughly 9.7% to $2,493.2 million.
SMG’s Outlook
The company reiterated its previously stated guidance for U.S. Consumer segment net sales, adjusted gross margin, adjusted EBITDA and free cash flow. Given the ongoing uncertainty in the cannabis business, the company is no longer issuing full-year revenue guidance for its Hawthorne segment.
SMG’s Price Performance
SMG’s shares are down 23.7% over a year compared with an 10.1% fall recorded by its industry.
Image Source: Zacks Investment Research
SMG’s Zacks Rank & Key Picks
SMG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Hawkins, Inc. (HWKN - Free Report) , SSR Mining Inc. (SSRM - Free Report) and Coeur Mining (CDE - Free Report) . While HWKN and CDE carry a Zacks Rank #1 (Strong Buy), SSRM has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 14. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%.
SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average.
Coeur Mining is slated to release first-quarter results on May 7. CDE has a trailing four-quarter earnings surprise of 27.9%, on average.