The 10-second takeaway
For the quarter ended June 30 (Q3), Scotts Miracle-Gro missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins dropped across the board.
Scotts Miracle-Gro logged revenue of $1.06 billion. The 10 analysts polled by S&P Capital IQ hoped for sales of $1.13 billion on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $1.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.60. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.96 per share. GAAP EPS of $1.50 for Q3 were 11% lower than the prior-year quarter's $1.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.5%, 330 basis points worse than the prior-year quarter. Operating margin was 15.6%, 390 basis points worse than the prior-year quarter. Net margin was 8.8%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $434.7 million. On the bottom line, the average EPS estimate is -$0.57.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $2.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 228 members out of 259 rating the stock outperform, and 31 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 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 $43.20.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Scotts Miracle-Gro Company. 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.