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) Q4 Earnings Miss, Sales Top Estimates
Read MoreHide Full Article
The Scotts Miracle-Gro Company (SMG - Free Report) posted net loss from continuing operations of $55.5 million or 99 cents per share in fourth-quarter fiscal 2019 (ended Sep 30, 2019), narrower than loss of $130.6 million or $2.36 per share in the year-ago quarter.
Barring one-time items, adjusted loss per share was 91 cents, wider than loss of 75 cents a year ago. The figure was also wider than the Zacks Consensus Estimate of loss of 87 cents per share.
Net sales rose around 15% year over year to $497.7 million. The figure surpassed the consensus mark of $451 million.
Company-wide gross margin rate rose to 18% from 17% in the year-ago quarter.
Fiscal 2019 Results
Adjusted net income for fiscal 2019 rose roughly 19% year over year to $251.8 million or $4.47 per share, while net sales rose roughly 18% to $3,156 million.
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
In the fiscal fourth quarter, net sales in the U.S. Consumer division rose roughly 4% year over year to $261.6 million. The segment generated loss of $20.7 million against net profit of $5.3 million in the year-ago quarter.
Net sales in the Hawthorne segment rose nearly 38% to $210 million in the quarter, which was primarily driven by strong demand across the United States. The segment’s profit grew to $21.9 million from $0.5 million a year ago.
Net sales in the Other segment fell 10% to $26.1 million. The segment generated loss of $2.6 million against net profit of $0.7 million in the year-ago quarter.
Balance Sheet
At the end of fiscal 2019, the company had cash and cash equivalents of $18.8 million, down 44.5% year over year. Long-term debt was $1,523.5 million, down 19.2%.
Outlook
Scotts Miracle-Gro expects company-wide sales growth of 4-6% for fiscal 2020. Moreover, the company anticipates Hawthorne’s sales to grow 12-15% and U.S. Consumer sales to rise 1-3%.
It expects adjusted earnings per share of $4.95-$5.15 for fiscal 2020.
Free cash flow is expected to be $300 million.
Price Performance
Shares of the company have rallied 32.6% in the past year against the industry’s 21.6% decline.
Zacks Rank & Other Stocks to Consider
Scotts Miracle-Gro currently carries a Zacks Rank #2 (Buy).
Kinross has an expected earnings growth rate of 210% for 2019. The company’s shares have surged 80.9% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.2% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 67.6% in the past year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Scotts Miracle-Gro (SMG) Q4 Earnings Miss, Sales Top Estimates
The Scotts Miracle-Gro Company (SMG - Free Report) posted net loss from continuing operations of $55.5 million or 99 cents per share in fourth-quarter fiscal 2019 (ended Sep 30, 2019), narrower than loss of $130.6 million or $2.36 per share in the year-ago quarter.
Barring one-time items, adjusted loss per share was 91 cents, wider than loss of 75 cents a year ago. The figure was also wider than the Zacks Consensus Estimate of loss of 87 cents per share.
Net sales rose around 15% year over year to $497.7 million. The figure surpassed the consensus mark of $451 million.
Company-wide gross margin rate rose to 18% from 17% in the year-ago quarter.
Fiscal 2019 Results
Adjusted net income for fiscal 2019 rose roughly 19% year over year to $251.8 million or $4.47 per share, while net sales rose roughly 18% to $3,156 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 fourth quarter, net sales in the U.S. Consumer division rose roughly 4% year over year to $261.6 million. The segment generated loss of $20.7 million against net profit of $5.3 million in the year-ago quarter.
Net sales in the Hawthorne segment rose nearly 38% to $210 million in the quarter, which was primarily driven by strong demand across the United States. The segment’s profit grew to $21.9 million from $0.5 million a year ago.
Net sales in the Other segment fell 10% to $26.1 million. The segment generated loss of $2.6 million against net profit of $0.7 million in the year-ago quarter.
Balance Sheet
At the end of fiscal 2019, the company had cash and cash equivalents of $18.8 million, down 44.5% year over year. Long-term debt was $1,523.5 million, down 19.2%.
Outlook
Scotts Miracle-Gro expects company-wide sales growth of 4-6% for fiscal 2020. Moreover, the company anticipates Hawthorne’s sales to grow 12-15% and U.S. Consumer sales to rise 1-3%.
It expects adjusted earnings per share of $4.95-$5.15 for fiscal 2020.
Free cash flow is expected to be $300 million.
Price Performance
Shares of the company have rallied 32.6% in the past year against the industry’s 21.6% decline.
Zacks Rank & Other Stocks to Consider
Scotts Miracle-Gro currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 210% for 2019. The company’s shares have surged 80.9% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.2% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 67.6% in the past year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>