Scotts Miracle-Gro's Q1 Earnings and Revenues Beat Estimates

The Scotts Miracle-Gro Company SMG 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 QuoteSMG’s Segment DetailsIn 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 SheetAt 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 OutlookThe 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 PerformanceShares 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 ResearchSMG’s Zacks Rank & Key PicksScotts 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, Hecla Mining Company HL and Ingevity Corporation NGVT.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%.  Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Scotts Miracle-Gro Company (SMG): Free Stock Analysis Report Hecla Mining Company (HL): Free Stock Analysis Report ICL Group Ltd. (ICL): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks