largest source of revenue for the company, Do Not Sell My Personal Information (CA Residents Only). Unfortunately, that wasn't enough to convince Wall Street that operations were on the right track. Scotts Miracle-Gro (NYSE: SMG) reported a double-digit decline in YOY sales but that is the only negative thing we can say about the report. Headquartered in Marysville, Ohio, The Scotts Miracle-Gro Company (NYSE:SMG) provides products and services for lawn, garden care, and indoor and hydroponic gardening. Scotts core business saw a significant windfall during COVID lockdowns. Please disable your ad-blocker and refresh. U.S. Consumer sales guidance has been reaffirmed at 0 to -5%. Net sales in the Hawthorne segment rose 71% year over year to $309.4 million in the reported quarter. Click Here to get the full Stock Report for Scotts Miracle-Gro Co stock. To make the world smarter, happier, and richer. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 30.). The company was founded in 1868 when O.M. However, the market apparently decided that it had already been baked into the share price, and investors sold the stock lower in June. Will the recent negative trend continue leading up to its next earnings release, or is Scotts due for a breakout? Scotts Miracle-Gro has seen some headwinds as it faces a difficult comparison from its stellar results last year, and as consumers shift towards pre-pandemic activities. Long-term debt was $1,979.8 million, up 0.5% year over year. The stock, which closed Monday at the lowest price since May 4, 2020, has dropped 16.4% over the past three months while the S&P 500 In regard to the supply chain, Hagedorn told shareholders, Over the past few months, there have been significant improvements to the Bonnie supply chain, both in the way of process improvement and a new influx of talent. During the Earnings Conference Call, Hadegorn went on to discuss current struggles with the supply chain and how the company has been making strides to rectify the issue. We didnt outperform our competitors during COVID due to dumb luck. That's not a particularly good sign. Scotts Miracle-Gro produced revenue of $737.8 million in the fiscal 4th quarter or down 17.1% from last year. David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now and Scotts Miracle-Gro wasn't one of them! A $0.20-per-share hit from the sale of the European business is more than originally expected, but it's a small fraction of the original full-year 2017 guidance range of $4.10 to $4.30. One-month return of The Scotts Miracle-Gro Company (NYSE:SMG) was 30.69%, and its shares lost 59.28% of their value over the last 52 weeks. Scotts Miracle-Gro began trading on the New York Stock Exchange. How Have Estimates Been Moving Since Then? Dcouvrez comment nous utilisons vos donnes personnelles dans notre Politique de confidentialit et notre Politique relative aux cookies. Stock Price data may be delayed up to 15 minutes. Younger workers know being remote has drawbacks, but they dont care. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Why was SMG stock down today? Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. The second concern is that German giant Bayer is "immediately" engaging with partners to discuss the future of glyphosate-based products in the U.S. residential market." In addition, you can check the top 5 holdings of the fund to know its best picks in 2022. Vous pouvez modifier vos choix tout moment en cliquant sur les liens Paramtres de confidentialit et des cookies ou Tableau de bord sur la confidentialit prsents sur nos sites et dans nos applications. This article is for informational purposes and does not constitute as financial advice. Find out what this means to you and get the rest of the rankings on SMG! Type a symbol or company name. We discussed The Scotts Miracle-Gro Company (NYSE:SMG) in another article and shared the list of cheap pot stocks to buy. Looking for a portfolio of ideas like this one? Moving down the report, the company did experience some margin pressures but has plans to mitigate that in the first quarter of the year. Visit a quote page and your recently viewed tickers will be displayed here. Company-wide gross margin rate (as adjusted) was 26.7% compared with 14.9% in the year-ago quarter. During the call, many of the companys executives spoke on SMGs recent revenue shortcomings and highlighted how the company plans to combat these issues. The big problem for investors, however, was likely related to the company's outlook. It's all about making every drop of water count by following three key steps (that apply even when water isn't limiting): Start with good soil - mixing nutrient-rich organic matter, like compost or Miracle-Gro Garden Soil, into your existing soil not only makes it easier for your plants to grow, but it also improves the soil structure . Scott Miracle-Gro is one of the largest global marketers of branded lawn and garden care products for consumers. The takeaway for investors new and prospective alike is that results were so strong they are confirming a classic reversal in share prices of the stock. Along with a slowdown in sales of gardening and lawn care products, Scotts Miracle-Gro is a company with ties to the cannabis industry, which has been hit hard over the last year. Theres no denying that sales comps look poor for Scotts Miracle-Gro. While Scotts Miracle-Gro demonstrated steady growth over the last three years and throughout the early stages of the pandemic, the company has been hit hard over the last 12 months. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. -0.20% These competitive advantages drove both consumer engagement before and during the COVID crisis. Type a symbol or company name. Just dont expect to make a fast buck on it in the short-term. However, over the course of the last few years, several very large states and regions have voted to legalize recreational use, including New York, New Jersey, and Connecticut. Adjusted earnings came in at $1.98 per share, down from $3.98 a year ago. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Its 52-week low is $110.81 per share, and its 52-week high is $254.34 per share. Turning to the charts, shares of Scotts Miracle-Gro are up more than 12% on the news and look ready to move higher. Scotts Miracle-Gro (SMG) Q2 2023 Earnings Call Transcript, Scotts Miracle-Gro (SMG) Q1 2023 Earnings Call Transcript, Scotts Miracle-Gro (SMG) Q4 2022 Earnings Call Transcript, Why Shares in ScottsMiracle-Gro Slumped Today, Scotts Miracle-Gro (SMG) Q3 2022 Earnings Call Transcript, 1 Stock-Split Stock to Buy Hand Over Fist in June and 1 to Avoid Like the Plague, Statistically Speaking, These Are the 2 Worst Ages to Claim Social Security Benefits, U.S. Money Supply Hasn't Done This Since the Great Depression, and It Implies Something Big for Stocks, Surprise! Watch Live & FREE Thriving Trends Forecasted by This A.I. I wrote this article myself, and it expresses my own opinions. Theres no denying that sales comps look poor for Scotts Miracle-Gro. The company also said it no longer expects to make a "significant" acquisition in fiscal 2022, after previously saying it would continue pursuing acquisition opportunities throughout the year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. In the fourth quarter, the fund (Class Y) returned 5.66% compared to a 6.23% rise for the Russell 2000 and a 7.43% increase for the Russell 2500 Index. Scotts Miracle-Gro Co (SMG) stock is down -35.97% over the last 12 months, and the average rating from Wall Street analysts is a Buy. Management expects its full-year sales to grow by 17% to 19%, and it upgraded sales guidance in both of its business segments. Type a symbol or company name. Meanwhile, management hopes to get the ratio down to 3.5 times over the next two years. In 2022, the fund underperformed its benchmarks and returned -24.64%. I am not receiving compensation for it (other than from Seeking Alpha). Will SMG Stock Be Able to Recover? You probably saw our announcement last month about the acquisition of Luxx Lighting and True Liberty Bags, but let me give you some more context. Apple Inc. doesn't have to get flashy to cook up big new business opportunities, according to Evercore ISI analyst Amit Daryanani. The company beat on all other metrics and indicated strong demand for products would carry through into next year. The allowed the company's "other" segment to eclipse the European consumer segment as the second-largest. The company expects sale growth of 1-6% in fiscal 2021 compared with 0-5% expected earlier. There's one more negative thing here, however. Extra time at home over the past few years allowed many individuals the ability to take up new hobbies, some of which included gardening and lawn care. Some research has found evidence to indicate that glyphosate-based herbicides may be hazardous to human health, including a possible link to cancer. Financhill just revealed its top stock for investors right now so there's no better time to claim your slice of the pie. are now trading at or near their 52-week lows. Making the world smarter, happier, and richer. Consumer purchases of our products at our largest retail partners as measured in units were up 6 percent for the full year, with growth in every major product category. Scott began selling lawn seeds to customers. In March 2021, the U.S. International Trade Commission determined that subsidized fertilizer imports from Morocco and Russia have materially injured the U.S. phosphate industry and as a result, will be subject to countervailing duty orders on phosphate fertilizer imports for at least five years. Management lowered guidance and noted that the urgency of mending a highly leveraged balance sheet has increased. The selling, however, appears to be overdone, especially on the latter stock. Management pegs the company's ratio of debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) at roughly 5.1 times. A month has gone by since the last earnings report for Scotts Miracle-Gro (SMG). As such, the current dip in price may present a buy-the-drop opportunity for bargain seeking investors. While the company has not fallen into financial ruin by any means, its 2021 earnings looked less than stellar. Scotts Miracle-Gro saw big sales drops in each of its key businesses in the fiscal third quarter. I have no business relationship with any company whose stock is mentioned in this article. If you have an ad-blocker enabled you may be blocked from proceeding. Overall, supply chain issues combined with new state-authorized markets related to marijuana have resulted in a significant slowdown in cannabis sales. Scotts Miracle-Gro reported net income from continuing operations of $25.2 million or 43 cents per share in first-quarter fiscal 2021 (ended Jan 2, 2021) against a net loss of $71.3 million. Disclosure: None. As for earnings, the company is expecting adjusted EPS in the range of $8.50 to $8.90 compared to the Marketbeat.com consensus of $8.54. At this time, Scotts has an average Growth Score of C, a grade with the same score on the momentum front. How Scotts Miracle-Gro became one of the biggest players in cannabis | CNN Business Markets DOW 33,093.34 1.00% S&P 500 4,205.45 1.30% NASDAQ 12,975.69 2.19% Fear & Greed Index 67 Latest. Turning to the guidance, the company is expecting demand to hold up over the next year and possibly grow. It also comes with 12 years of dividend growth. Here management trimmed guidance, with sales expected to be lower by between 8% and 9%. Quarterly EPS dropped 25% from the year-ago period, mostly due to the timing of several asset sales. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock. According to Hagedorn, the company saw this market decline coming as far back as June, which has given it ample time to prepare. The company said Hawthorne sales have been "challenged for several months" because of an oversupply of cannabis. The figure topped the Zacks Consensus Estimate of a loss of 73 cents. Click to get this free reportThe Scotts MiracleGro Company (SMG): Free Stock Analysis ReportTo read this article on Zacks.com click here. These results are primarily driven by strong retailer support in the U.S. Consumer segment and continued momentum in the Hawthorne segment. This increased interest throughout 2020 was beneficial for lawn and garden supply companies like Scotts Miracle-Gro. It has been a home run for Hawthorne and is critical to our long-term success. This updated guidance for gross margin rate compares with the previously anticipated decline of 50 bps. Zacks Equity Research for Scotts Miracle-Gro NYSE:SMG on Wednesday reported Q2 fiscal 2023 adjusted earnings of $3.78 per diluted share, down from $5.03 a year earlier. The company has a market cap of around $7.1 Billion. There are a couple of potential storm clouds on the horizon for Scotts Miracle-Gro. In other words, last month's share-price movement is much ado about nothing for long-term investors. A copy of the same can bedownloaded here. This should result in a better in-store experience for consumers and more cross-selling opportunities for our core brands, especially Miracle-Gro.. I believe, however, that the share price has been overly punished, and management is taking the downturn as an opportunity to restructure the business in anticipation of a strong growing seasons. Cost basis and return based on previous market day close. Meanwhile, the recent price weakness has pushed SMGs dividend yield to 2%. In early February 2022, Scotts Miracle-Gro released its Q1 2022 Earnings Conference Call. Sales guidance in the Hawthorne segment was raised to 20-30% from 15-20% expected previously. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Scotts Miracle-Gro's Q2 Earnings Beat Estimates, Sales Lag. It operates through three segments: U.S. Consumer, Hawthorne, and Other. Although recreational use is still prohibited, licenses to grow the crop were granted in Laissez Faire fashion to anyone willing to buy one. Warren Buffett Has Bet Over $166 Billion on 3 AI Growth Stocks, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, earnings before interest, taxes, depreciation, and amortization, Copyright, Trademark and Patent Information. The Motley Fool has no position in any of the stocks mentioned. The lawn care products maker fell this morning after it released fiscal fourth-quarter earnings, but investors seemed to give the . Zacks->. Why? The company's fiscal third-quarter earnings update was the cause of the downbeat mood on Wall Street. SMG has seen material share price weakness over the past 12 months, falling from a high of $254 achieved in the spring of last year to just $134 at present. Thank you for signing up! The company has historically reported a loss during its first quarter thanks to the seasonal nature of the lawn and garden industry. That's a laudable goal, but there's clearly a lot of work to do between 5.1 times debt to EBITDA and 3.5. Scotts Miracle-Gro reported net income from continuing operations of $25.2 million or 43 cents per share in first-quarter fiscal 2021 (ended Jan 2, 2021) against a net loss of $71.3 million or $1.28 per share in the year-ago quarter. Is $25 insulting? The company recently released its Q1 2022 fiscal report, highlighting a 24% year-over-year drop. Nous, Yahoo, faisons partie de la famille de marques Yahoo. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. Cost basis and return based on previous market day close. This post may contain affiliate links or links from our sponsors. Members receive complete early access to our articles along with exclusive income-focused model portfolios and a comprehensive suite of tools and models to help build sustainable portfolio income targeting premium dividend yields of up to 10%. According to Hagedorn, the past success of the SMG shows that current circumstances will soon be overcome because of the companys resilience and strong team. That's more than originally expected when plans to sell the unit were announced earlier in the year. Annual revenue has continued to grow over the last several years, reaching $4.1 Billion in 2020 and $4.9 Billion in 2020. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. All Rights Reserved. Written by The Scotts Miracle-Gro Company SMG reported a second-quarter fiscal 2023 (ending Apr 1, 2023) profit of $109.4 million or $1.94 per share, 60.4% lower than the profit of $276.5 million or $4.94 per share in the prior-year quarter.. Barring one-time items, the adjusted earnings were $3.78 per share compared with $5.03 a year ago, topping the Zacks Consensus Estimate of $3.20. The segment reported no profit or loss in the quarter compared with a loss of $3.5 million in the prior-year quarter. The Scotts MiracleGro Company (SMG): Free Stock Analysis Report. The best news is that revenue beat the Marketbeat.com consensus by 600 basis points and reveals the stickiness of trends sparked by the pandemic. Scotts Miracle-Gro (SMG) Q2 2023 Earnings Call Transcript, Scotts Miracle-Gro (SMG) Q1 2023 Earnings Call Transcript, Scotts Miracle-Gro (SMG) Q4 2022 Earnings Call Transcript, Why Shares in ScottsMiracle-Gro Slumped Today, Scotts Miracle-Gro (SMG) Q3 2022 Earnings Call Transcript, 1 Stock-Split Stock to Buy Hand Over Fist in June and 1 to Avoid Like the Plague, Statistically Speaking, These Are the 2 Worst Ages to Claim Social Security Benefits, U.S. Money Supply Hasn't Done This Since the Great Depression, and It Implies Something Big for Stocks, Surprise! Shares of Scotts Miracle-Gro ( SMG 4.90%) were moving higher today after the lawn-care products company offered an update to its fiscal second-quarter performance this morning. Whether your focus is High Yield or Dividend Growth, weve got you covered with actionable investment research focusing on real income-producing asset classes that offer potential diversification, monthly income, capital appreciation, and inflation hedging. The 17.1% decline isn't pretty to see but is against last year's comp of up 79% so . It has since grown into a multi-billion dollar company that sells consumer lawn, garden, and pest control products. Risks to SMG include its somewhat leveraged BB rated balance sheet, which carries a net debt to EBITDA ratio of 4.2x. Currently, California, Colorado, and Michigan have the biggest and most mature markets. 11 Best Performing S&P 500 Stocks in 10 Years, 18 Countries that Produce the Most Nuclear Energy. Shares of Scotts Miracle-Gro (SMG -4.33%), a lawn care specialist and provider of hydroponic products to the marijuana space, fell as much as 7.5% in morning trading on Aug. 3. SMG lost -$11.23 per share in the over the last 12 months. Jim Hagedorn, the Chairman and Chief Executive Officer of Scotts Miracle-Gro, highlighted the overall success the company has had over the past six years. Investors generally need to pay extra attention when companies start talking about leverage problems, so this stock probably needs to be watched closely for a while. These symbols will be available throughout the site during your session. Apple could be cooking up 3 more $10 billion-plus businesses, one analyst says, The $3,499 Vision Pro headset, iOS 17, and everything else Apple just announced at WWDC, Tesla recalls some Model Y EVs, stock jumps toward 7-day win streak. Will the recent negative trend . While both companies were so-called COVID beneficiaries (businesses that benefited from consumers staying home and spending on their homes during COVID), we felt they possessed certain additional drivers that would maintain their fundamentals into 2022 and beyond. Scotts Miracle-Gro Co (SMG) stock has fallen -3.96% while the S&P 500 is down -0.32% as of 2:36 PM on Monday, Jun 5. has shed 10.6%. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Not only is price action confirming support at the short-term moving average but the indicators are firing strong entry signals as well. Portions of this content protected by US Patent numbers 7,865,496, 7,856,390, and 7,716,116. The Motley Fool has a disclosure policy . As shown below, SMG now trades well below its 200 and 50-day moving averages of $171 and $154, and carries an RSI score of 29, indicating that its now in oversold territory. Barring one-time items, adjusted earnings per share (EPS) were 39 cents per share, up 134.8% year over year. It comes with little surprise Scotts has a Zacks Rank #2 (Buy). Portions of this content may be copyrighted by Fresh Brewed Media, Investors Observer, and/or O2 Media LLC. Create your Watchlist to save your favorite quotes on Nasdaq.com. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Total revenue declined only 3% during the comparison period. Headquartered in Marysville, Ohio, The Scotts Miracle-Gro Company (NYSE:SMG) provides products and services for lawn, garden care, and indoor and hydroponic gardening. Hagedorn went on to say, weve built a market-leading position and driven strong returns for our retail partners by investing strongly behind innovation as well as sales and marketing support. Scotts Miracle Gro (SMG) stock keeps falling, even after the company reported better than expected earnings. I highlight why SMG may be a good buy at present for bargain seekers. Management made a point of highlighting that it was looking at ways to improve its performance and strengthen its balance sheet. Its important to note that Scotts Miracle-Gro actually got a solid boost during the pandemic as many households focused more on gardening and lawn care when they were stuck at home for prolonged periods. The 2021 results signify the first time it has reported a first-quarter profit. Meeting it is another. Starting with the negatives, SMG is seeing a challenging operating environment as consumers have shifted away from pandemic-related activities such as gardening. On the bottom line, the companys GAAP loss (seasonally expected) came in at $0.87 and beat the consensus by $0.02 while the adjusted loss of $0.84 beat by $0.04. To make the world smarter, happier, and richer. On a two-year basis, the revenue is up 48% which is an equally strong figure for investors to chew on. *Average returns of all recommendations since inception. In addition, SMGs Hawthorn segment saw a 38% YoY sales decline, driven by slowing state-level cannabis legalization, which dampened demand for cannabis growing equipment. Management is taking the opportunity to restructure the business, and is positioning the Hawthorne unit for a turnaround. The Motley Fool->. Invest better with The Motley Fool. Just a little over a year later, SMG stock has fallen by over $100 a share. This is a result of recent debt issuances to fund acquisitions, and Id like to see the leverage ratio trend down towards the 3x range over time. Want the latest recommendations from Zacks Investment Research? Why is Scotts Miracle-Gro Company stock dropping? Chemours Co (CC) Stock: What Does the Chart Say Monday? During the call, many of the company's executives spoke on SMG's recent revenue shortcomings and highlighted how the company plans to combat these issues. The adjusted gross margin rate is now projected to decline 125-175 basis points (bps) year-over-year. Scotts Miracle-Gro will net roughly $150 million in cash from the sale, but it will result in earnings dilution of about $0.20 per share in fiscal 2017. Complete Scotts Miracle-Gro Co. stock information by Barron's. View real-time SMG stock price and news, along with industry-best analysis. While 2021 and Q1 2022 earnings are not looking good for SMG, company executives remain hopeful for SMGs future. That excess supply bled into grey markets across the country, devastating pricing for growers in other states. Gross margins shrank nearly 700 basis points under the influence of higher costs for commodities, freight, and labor but were offset to some degree by decreased promotional activity and price increases.
2007 Jeep Grand Cherokee Throttle Position Sensor Problems,
Silicon Mix Hair Treatment On Wigs,
Data Architecture Skills,
Sony Neckband Earphones,
Ombre Glitter Tumbler,
2002 Nissan Sentra Air Conditioner Not Working,
Vittore Xl Ring, Round Cut, White, Rhodium Plated,
Kenwood Drv-n520 Firmware Update,