The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Scotts Miracle-Gro missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.
Gross margins shrank, operating margins dropped, net margins increased.
Scotts Miracle-Gro notched revenue of $401.2 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $412.7 million on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $417.2 million.
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 -$0.59. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.58 per share. GAAP EPS were -$0.66 for Q4 compared to -$0.87 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.2%, 80 basis points worse than the prior-year quarter. Operating margin was -11.1%, 700 basis points worse than the prior-year quarter. Net margin was -10.0%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $213.0 million. On the bottom line, the average EPS estimate is -$1.15.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $2.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 253 rating the stock outperform, and 30 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Scotts Miracle-Gro a green thumbs-up, and eight 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 $40.75.
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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 owns shares of The Scotts Miracle-Gro Company. 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.