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Scotts Miracle-Gro's Q1 Earnings and Revenues Beat Estimates
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The Scotts Miracle-Gro Company (SMG - Free Report) reported a first-quarter fiscal 2025 (ended Dec. 28, 2024) loss of $69.5 million or $1.21 per share compared with a loss of $80.5 million or $1.42 per share in the year-ago quarter.
Barring one-time items, the adjusted loss was 89 cents a share, narrower than a loss of $1.45 a year ago. The figure was also narrower than the Zacks Consensus Estimate of a loss of $1.28.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales rose around 1.6% year over year to $416.8 million and beat the consensus mark of $393.4 million. The first quarter typically accounts for less than 15% of full-year sales due to the seasonal nature of the business.
The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise
In the fiscal first quarter, net sales in the U.S. Consumer division were up 11% year over year to $340.9 million. It topped our estimate of $318.8 million. A robust fall season across all categories, as well as early retailer load-in for the spring season, drove the upside.
Net sales in the Hawthorne segment plunged 35% year over year to $52.1 million in the reported quarter. The figure missed our estimate of $61.7 million. The reduction was owing to Hawthorne's strategic departure from third-party distribution.
Net sales in the other segment were up 1% year over year to $23.8 million.
SMG’s Balance Sheet
At the end of the quarter, the company had cash and cash equivalents of $9.8 million, down from $10.4 million in the year-ago quarter. Long-term debt was $2,636.9 million, down from $2,969 million.
SMG’s Fiscal 2025 Outlook
The company reaffirmed full-year sales, adjusted gross margin and adjusted EBITDA guidance, which it stated last quarter, and reduced interest expense guidance. U.S. consumer net sales are projected to experience low single-digit growth, excluding non-repeat sales for AeroGarden and bulk raw material sales. Hawthorne's net sales are expected to decrease by mid-single digits. SMG expects adjusted gross margin of around 30% for fiscal 2025. Adjusted EBITDA is projected to range from $570 million to $590 million. Interest expenses are estimated to be $15 million to $20 million lower than the previous year compared with an earlier expected decrease of $10 million.
SMG’s Price Performance
Shares of Scotts Miracle-Gro have gained 32.5% in the past year compared with a 7.8% rise of the industry.
Image Source: Zacks Investment Research
SMG’s Zacks Rank & Key Picks
Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd. (ICL - Free Report) , Hecla Mining Company (HL - Free Report) and Ingevity Corporation (NGVT - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla Mining is slated to report fourth-quarter results on Feb. 13. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.
Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.
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Scotts Miracle-Gro's Q1 Earnings and Revenues Beat Estimates
The Scotts Miracle-Gro Company (SMG - Free Report) reported a first-quarter fiscal 2025 (ended Dec. 28, 2024) loss of $69.5 million or $1.21 per share compared with a loss of $80.5 million or $1.42 per share in the year-ago quarter.
Barring one-time items, the adjusted loss was 89 cents a share, narrower than a loss of $1.45 a year ago. The figure was also narrower than the Zacks Consensus Estimate of a loss of $1.28.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales rose around 1.6% year over year to $416.8 million and beat the consensus mark of $393.4 million. The first quarter typically accounts for less than 15% of full-year sales due to the seasonal nature of the business.
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 Details
In the fiscal first quarter, net sales in the U.S. Consumer division were up 11% year over year to $340.9 million. It topped our estimate of $318.8 million. A robust fall season across all categories, as well as early retailer load-in for the spring season, drove the upside.
Net sales in the Hawthorne segment plunged 35% year over year to $52.1 million in the reported quarter. The figure missed our estimate of $61.7 million. The reduction was owing to Hawthorne's strategic departure from third-party distribution.
Net sales in the other segment were up 1% year over year to $23.8 million.
SMG’s Balance Sheet
At the end of the quarter, the company had cash and cash equivalents of $9.8 million, down from $10.4 million in the year-ago quarter. Long-term debt was $2,636.9 million, down from $2,969 million.
SMG’s Fiscal 2025 Outlook
The company reaffirmed full-year sales, adjusted gross margin and adjusted EBITDA guidance, which it stated last quarter, and reduced interest expense guidance. U.S. consumer net sales are projected to experience low single-digit growth, excluding non-repeat sales for AeroGarden and bulk raw material sales. Hawthorne's net sales are expected to decrease by mid-single digits. SMG expects adjusted gross margin of around 30% for fiscal 2025. Adjusted EBITDA is projected to range from $570 million to $590 million. Interest expenses are estimated to be $15 million to $20 million lower than the previous year compared with an earlier expected decrease of $10 million.
SMG’s Price Performance
Shares of Scotts Miracle-Gro have gained 32.5% in the past year compared with a 7.8% rise of the industry.
Image Source: Zacks Investment Research
SMG’s Zacks Rank & Key Picks
Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd. (ICL - Free Report) , Hecla Mining Company (HL - Free Report) and Ingevity Corporation (NGVT - Free Report) .
ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla Mining is slated to report fourth-quarter results on Feb. 13. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.
Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.