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GrowGeneration Q4 Earnings Miss Estimates, Revenues Decrease Y/Y

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GrowGeneration Corp. (GRWG - Free Report) reported an adjusted loss per share of 27 cents in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 18 cents. The company reported a loss of 18 cents in the fourth quarter of 2023.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company had recorded $6.7 million non-cash impairment of goodwill and intangible assets related to prior acquisitions in the quarter. Including this, GRWG reported a loss per share of 39 cents in the quarter under review. 

GrowGeneration Corp. Price, Consensus and EPS Surprise

 

GrowGeneration Corp. Price, Consensus and EPS Surprise

GrowGeneration Corp. price-consensus-eps-surprise-chart | GrowGeneration Corp. Quote

GrowGeneration generated revenues of $37 million in the quarter under review, which declined 24.3% year over year due to 19 fewer retail locations in 2024. The top line missed the Zacks Consensus Estimate of $38.3 million. Comparable store sales in the quarter increased 1% from the prior year.

GRWG’s Margins Fall Y/Y in Q4

The cost of sales declined 17% year over year to $31 million in the quarter. Gross profit fell 47.4% year over year to $6.1 million. The gross margin was 16.3% in the quarter under review compared with 23.5% in the prior-year quarter. The decline was due to strategic rationalization of the company's product offerings for its restructuring plan. 

Selling, general and administrative costs declined 12.8% year over year to $7 million in the quarter under review. Adjusted EBITDA was a loss of $8.1 million in the quarter compared with the prior-year quarter’s loss of $3.7 million.

GrowGeneration’s Cash Position

At the end of 2024, GRWG had cash, cash equivalents and marketable securities of $56.5 million. Inventory was $40 million, and prepaid and other current assets were $8 million at the 2024 end. Total current liabilities, including accounts payable, and accrued payroll and other liabilities, were $24 million at the end of 2024.

GRWG’s 2024 Results

GrowGeneration reported a loss per share of 82 cents in 2024. The company reported a loss of 76 cents in 2023.

GRWG generated revenues of $189 million in 2024, which declined 16.4% year over year and missed the Zacks Consensus Estimate of $190 million.

GrowGeneration’s 2025 Guidance

The company expects revenues between $170 million and $180 million for 2025.

GRWG’s Stock Price Performance

In the past year, GrowGeneration shares have lost 47.4% compared with the industry’s 8.6% fall.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

Performances of Agricultural Products Stocks in Q4

Bunge Global SA (BG - Free Report) reported fourth-quarter 2024 adjusted earnings of $2.13 per share, which missed the Zacks Consensus Estimate of $2.30 by a margin of 7%. The bottom line marked a 42% year-over-year plunge.

BG’s net revenues were $13.5 billion, down 9.3% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $12.8 billion.

West Fraser Timber Co. Ltd. (WFG - Free Report) posted fourth-quarter 2024 adjusted earnings of 8 cents per share, beating the Zacks Consensus Estimate earnings of 6 cents. The company incurred a loss of 23 cents in the year-ago quarter. 

WFG generated revenues of $1.41 billion, down 7.2% year over year. The top line beat the Zacks Consensus Estimate of $1.39 billion.

GrowGeneration’s Zacks Rank & Stock to Consider

GRWG currently has a Zacks Rank #3 (Hold). 

A better-ranked stock from the basic materials space is ArcelorMittal S.A. (MT - Free Report) . It has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ArcelorMittal has an average trailing four-quarter earnings surprise of 4.1%. The Zacks Consensus Estimate for MT’s 2025 earnings is pegged at $3.72 per share. Its shares gained 17% in the last year.

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