The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Scotts Miracle-Gro beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share shrank.
Margins grew across the board.
Scotts Miracle-Gro recorded revenue of $205.8 million. The nine analysts polled by S&P Capital IQ looked for revenue of $199.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$1.12. The 11 earnings estimates compiled by S&P Capital IQ forecast -$1.13 per share. GAAP EPS were -$1.10 for Q1 versus -$1.21 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 15.1%, 340 basis points better than the prior-year quarter. Operating margin was -45.4%, 80 basis points better than the prior-year quarter. Net margin was -32.9%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $2.09.
Next year's average estimate for revenue is $2.88 billion. The average EPS estimate is $2.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 219 members out of 249 rating the stock outperform, and 30 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 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 $43.80.
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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 recommends 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.