Scotts Miracle-Gro Company (NYSE: SMG) Earnings Report Highlights

• Scotts Miracle-Gro reported an EPS of -$1.21, surpassing the estimated EPS of -$1.23 and showing improvement from the previous year's loss.
• The company's U.S. Consumer net sales increased by 11%, driven by strong fall lawn and garden campaigns and retailer support.
• GAAP gross margin rate improved by 750 basis points to 22.7%, and the non-GAAP adjusted gross margin rate increased by 1,030 basis points to 24.0%.

Scotts Miracle-Gro Company (NYSE: SMG) is a leading marketer of branded consumer lawn and garden products, as well as indoor and hydroponic growing products. The company recently reported its earnings for the first quarter ending December 2024. Despite facing challenges, SMG's performance shows signs of improvement, particularly in its U.S. Consumer segment.

On January 29, 2025, SMG reported an earnings per share (EPS) of -$1.21, slightly better than the estimated EPS of -$1.23. This marks an improvement from the previous year's loss of $1.45 per share, as highlighted by Zacks. The non-GAAP adjusted loss per share was $0.89, surpassing the Zacks Consensus Estimate of a loss of $1.28 per share.

The company's actual revenue for the period was $416.8 million, which fell short of the estimated $1.52 billion. However, U.S. Consumer net sales increased by 11%, driven by a strong fall lawn and garden campaign and retailer support for the 2025 spring season. Consumer point-of-sale figures rose by 12% in dollar terms and 13% in units.

Scotts Miracle-Gro's GAAP gross margin rate improved by 750 basis points to 22.7%, while the non-GAAP adjusted gross margin rate increased by 1,030 basis points to 24.0%. The company reported a non-GAAP Adjusted EBITDA of $4 million, reflecting a $30 million improvement. These metrics indicate a positive trend in the company's financial health.

Despite a negative price-to-earnings (P/E) ratio of -171.32, SMG's price-to-sales ratio of 1.15 suggests that investors are paying $1.15 for every dollar of sales. The company's current ratio of 1.88 indicates a good level of liquidity to cover short-term liabilities.