L.B. Foster's Earnings Surpass Estimates, Revenues Miss in Q3

The Scotts Miracle-Gro Company SMG reported a fourth-quarter fiscal 2024 (ended Sept. 30, 2024) loss of $244 million or $4.29 per share compared with a loss of $468.4 million or $8.33 per share in the year-ago quarter. Barring one-time items, the adjusted loss was $2.31 per share, narrower than a loss of $2.77 a year ago. The figure was wider than the Zacks Consensus Estimate of a loss of $1.94.

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Net sales rose 10.7% year over year to $414.7 million and surpassed the consensus mark of $393 million. The upside in sales was due to higher sales in the U.S. Consumer division driven by the normalization of shipment timing.

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 fourth quarter, net sales in the U.S. Consumer division were up 54% year over year to $309.7 million. It missed our estimate of $313 million.

Net sales in the Hawthorne segment tumbled 46% year over year to $80.5 million in the reported quarter. The figure lagged our estimate of $88 million.

Net sales in the other segment increased 3% year over year to $24.5 million.

SMG’s Balance Sheet

At the end of fiscal 2024, the company had cash and cash equivalents of $71.6 million, up from $31.9 million at the end of fiscal 2023. Long-term debt was $2,174.2 million, down from $2,557.4 million in fiscal 2023.

Free cash flow for fiscal 2024 was $583.5 million, up from $438.2 million the previous year, with gains mostly from account receivable sales and more inventory reductions during the year. As of the end of the year, the company met its stated goal of driving inventories to a sustainable level of less than $600 million in the short term.

SMG’s Fiscal 2025 Outlook

In fiscal 2025, the company intends to achieve additional gross margin recovery, invest at least $40 million in its brands and generate meaningful adjusted EBITDA growth.

SMG’s Stock Price Performance

Shares of Scotts Miracle-Gro have gained 25.4% in the past year against a 16.7% decline of the industry.

Nutrien Ltd. NTR recorded third-quarter 2024 profit of $25 million or 4 cents per share, down from $82 million or 15 cents in the year-ago quarter. Barring one-time items, adjusted earnings per share were 39 cents. The bottom line missed the Zacks Consensus Estimate of 44 cents.

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Sales fell around 5% year over year to $5,348 million in the quarter. The figure lagged the Zacks Consensus Estimate of $5,362.9 million.

The company's financial performance was adversely impacted by lower net realized selling prices in the Potash unit and decreased earnings from the Retail unit.

Nutrien Ltd. Price, Consensus and EPS Surprise

Nutrien Ltd. price-consensus-eps-surprise-chart | Nutrien Ltd. Quote

NTR’s Segment Highlights

Sales in the Nutrien Ag Solutions (Retail) segment declined 6% year over year to $3,271 million in the quarter. The figure outpaced our estimate of $3,174.5 million. Retail adjusted EBITDA decreased in the third quarter of 2024, owing to reduced crop nutrient sales volumes in North America and lower seed margins in Brazil. Adjusted EBITDA rose in the first nine months of the year, driven by better product margins in North America.

Potash division’s sales declined 9% year over year to $884 million, missing our estimate of $975.7 million. Potash adjusted EBITDA fell in the third quarter and first nine months of 2024 due to lower net selling prices, partly offset by record sales volumes. Higher potash output and continuous advancements in mine automation contributed to lower controllable cash costs of products produced in the first nine months of 2024.

Sales in the Nitrogen segment were $793 million, up around 10% year over year. The reported figure topped our estimate of $739.2 million. Nitrogen adjusted EBITDA rose in the third quarter of 2024, mostly owing to higher net selling prices. Adjusted EBITDA fell in the first nine months, as lower net selling prices more than offset lower natural gas costs and higher sales volumes.

Sales in the Phosphate segment were $412 million, down around 7% year over year. The figure beat our estimate of $345.1 million. Phosphate adjusted EBITDA remained constant in the quarter, with increased net selling prices offset by reduced sales volumes and higher input costs. Adjusted EBITDA fell in the first nine months, as lower net selling prices more than offset stronger sales volumes and lower costs.

NTR’s Financials

At the end of the quarter, Nutrien had cash and cash equivalents of $520 million, down around 6.1% year over year. Long-term debt was $9,383 million, falling 0.4%.

Cash used in operating activities was $908 million in the reported quarter.

NTR’s Guidance

NTR lowered Retail adjusted EBITDA projection to $1.5-$1.6 billion due to improved growing conditions in North America, which resulted in lesser pest pressure and field activity in the third quarter.

Potash sales volume projection was increased to 13.5-13.9 million tons due to ongoing strong worldwide demand. The range incorporates fourth-quarter maintenance downtime and the anticipation of a short-term labor disruption at the Port of Vancouver.

Nitrogen sales volume projection has been reduced to 10.6-10.8 million tons due to extended turnarounds and unforeseen outages in the third quarter, including the impact of weather-related occurrences.

NTR maintained its capital expenditures guidance for 2024 of $2.2-$2.3 billion and expects capital expenditures in a range of $2-$2.1 billion for 2025.

NTR’s Price Performance

Nutrien’s shares have lost 19.6% in the past year compared with a 16.7% decline of the industry.