Scotts Miracle-Gro Beats Up on Analysts Yet Again
Scotts Miracle-Gro (NYS: SMG) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Scotts Miracle-Gro beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP loss per share grew.
Margins dropped across the board.
Scotts Miracle-Gro reported revenue of $211.2 million. The 10 analysts polled by S&P Capital IQ expected sales of $205.5 million. Sales were 8.3% lower than the prior-year quarter's $230.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$1.18. The 10 earnings estimates compiled by S&P Capital IQ anticipated -$1.22 per share on the same basis. GAAP EPS were -$1.21 for Q1 versus -$1.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 11.7%, 960 basis points worse than the prior-year quarter. Operating margin was -47.4%, 630 basis points worse than the prior-year quarter. Net margin was -35.0%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.20 billion. On the bottom line, the average EPS estimate is $2.14.
Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $2.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 209 members out of 241 rating the stock outperform, and 32 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Scotts Miracle-Gro a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scotts Miracle-Gro is hold, with an average price target of $47.40.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Scotts Miracle-Gro. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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