Sales At Scotts Miracle-Gro's Cannabis-Focused Subsidiary Hawthorne Jump In Q1

Alex Oleinic - finance.yahoo.com Posted 5 years ago

Scotts Miracle-Gro Co (NYSE: SMG) reported financial results for the first quarter of fiscal 2019 Wednesday, including revenue growth of 35 percent on the year, driven by a substantial uptick registered by the Hawthorne subsidiary that caters to cannabis growers.

What Happened

Scotts Miracle-Gro's Q1 revenue of $298.1 million, up by 35 percent on the year, and beat the consensus estimate of $287.25 million.

The company's Hawthorne subsdiary saw its sales jump 84 percent to $140.8 million on the back of the acquisition of Sunlight Supply. The U.S. consumer segment sales appreciated by 9 percent to $136.9 million. 

The fertilizer maker's GAAP loss amounted to $1.49 per share versus 35 cents per share a year earlier, and higher than analysts' expectations of $1.25.

Excluding impairment, restructuring, other charges and the impact from the 2018 federal tax reform, the company's non-GAAP adjusted loss amounted to $1.39 per share, up from the $1.08-per-share loss for the same period in fiscal 2018.  

What's Next

In the earnings release, Scotts Miracle-Gro CFO Randy Coleman said the company is confident in its outlook for the current fiscal year. 

View more earnings on SMG

The company's outlook for fiscal 2019 includes sales growth of 10-11 percent and non-GAAP adjusted earnings per share between $4.10 and $4.30.

Scotts Miracle-Gro shares were up 2.23 percent at $71.53 at the time of publication Wednesday. 

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