Scotts Miracle-Gro Increases Sales but Misses Revenue Estimate
Aug 13th 2012 11:51AM
Updated Aug 13th 2012 11:54AM
Scotts Miracle-Gro (NYS: SMG) reported earnings on Aug. 9. Here are the numbers you need to know.
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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The article Scotts Miracle-Gro Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.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.
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