earnings
confidence high
sentiment positive
materiality 0.80
Scotts Miracle-Gro Q3 adjusted EPS $2.31 doubles YoY; U.S. Consumer sales up 11%
SCOTTS MIRACLE-GRO CO
2024-Q3 EPS reported
$3.64
revenue$3,138,000,000
- GAAP EPS $2.28 vs $0.77; Non-GAAP adjusted EPS $2.31 vs $1.17, more than doubling YoY.
- Total Q3 sales $1.2B (+7% YoY); U.S. Consumer $1B (+11%); Hawthorne $67.7M (-28%) but first profitable quarter since Q3 2022.
- GAAP gross margin 29.5% (up 1,110 bps); adjusted gross margin 29.2% (up 790 bps) on lower warehousing, materials, and inventory write-downs.
- Interest expense fell 18% YoY; net debt/EBITDA leverage ~5.5x within 6.5x covenant.
- Reaffirmed non-GAAP FY2024 guidance except Hawthorne net sales now expected 35-40% lower YoY; segment still targets break-even or better adjusted EBITDA.