Scottsmiracle-Gro: Nhsa Fall Garden Storytime

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.

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

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.