Scotts Miracle-Gro Company (NYSE:SMG) reported mixed results when it announced its first-quarter results in January. Revenue rose by 35% year over year, but the company's bottom line worsened with a larger net loss.

Investors learned how Scotts Miracle-Gro performed in the second quarter on Wednesday when the company provided its quarterly update before the market opened. How did Scotts fare? Here's what you need to know about the company's Q2 results.

One hundred dollar bills growing from the soil in a green field.

Image source: Getty Images.

By the numbers

Scotts Miracle-Gro's top-line performance improved in the second quarter. Revenue jumped 17% year over year, to $1.19 billion. Analysts estimated that the company's revenue for the second quarter would come in at $1.16 billion.

The company's GAAP net income in the second quarter was $396.5 million, or $7.09 per share. This was an improvement of Scotts Miracle-Gro's result in the prior-year period when the company announced net income of $148.9 million, or $2.59 per share.

On a non-GAAP adjusted basis, Scotts Miracle Gro's net income in the second quarter was $203.2 million, or $3.64 per share. This reflected a 26% increase from the prior-year period's adjusted net income of $165.2 million, or $2.88 per share. Wall Street analysts estimated that Scotts Miracle-Gro would post adjusted earnings of $3.42 per share in the quarter.

Behind the numbers

What was behind Scotts Miracle-Gro's impressive Q2 revenue growth? The biggest factor by far was a much stronger performance for the company's Hawthorne business, which supplies hydroponics and other products to the cannabis industry. 

Hawthorne's revenue skyrocketed a whopping 245% year over year, to $144 million. The primary reason for this huge growth was the acquisition of Sunlight Supply last year. Had Hawthorne owned Sunlight in the second quarter last year, the segment's year-over-year revenue growth would have been close to 21%.

But Hawthorne wasn't the only driver of growth for Scotts Miracle-Gro in the second quarter. Revenue for the company's U.S. consumer lawn and garden products increased by 8% year over year, to 994 million. CEO Jim Hagedorn said that "consumers came flying out of the gate compared with last year to get a head start on the lawn and garden season." 

Hagedorn added:

We've seen strong consumer engagement in every region, in every channel of retail and in nearly every product category in which we compete. Innovation has helped drive double-digit increases in lawn food, grass seed, and growing media products, while retailer support led to over a 30% increase in consumer purchases of mulch. In addition, consumer purchases of non-selective weed control also are well ahead of last year, including a more than 20% increase in Roundup purchases.

Looking ahead

Scotts Miracle-Gro didn't change its previous guidance for full-year 2019. The company still anticipates that adjusted earnings per share will come in between $4.10 and $4.30 per share. CFO Randy Coleman said that the great Q2 results gives the company "a high degree of confidence" in its guidance.

However, Jim Hagedorn mentioned that sales growth is likely to exceed the company's original guidance range of 10% to 11% sales growth for the full year. Investors should probably look for an updated outlook from Scotts in early June.