The 10-second takeaway
For the quarter ended March 30 (Q2), Scotts Miracle-Gro whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Scotts Miracle-Gro reported revenue of $1.02 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $1.13 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $1.17 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 $2.01 per share. GAAP EPS of $1.60 for Q2 were 22% lower than the prior-year quarter's $2.05 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 37.1%, 230 basis points worse than the prior-year quarter. Operating margin was 16.8%, 230 basis points worse than the prior-year quarter. Net margin was 9.8%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $2.18.
Next year's average estimate for revenue is $2.86 billion. The average EPS estimate is $2.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 218 members out of 245 rating the stock outperform, and 27 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Scotts Miracle-Gro a green thumbs-up, and seven 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 $44.50.
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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.