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

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

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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Posted-In: Hawthorne Scotts Miracle-GroCannabis Earnings News Guidance Markets Best of Benzinga

 

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