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Jan. 29, 2020, 10:34 a.m. EST

Scotts Miracle-Gro shares rally more than 6% after earnings boosted by cannabis states

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By Ciara Linnane

The Scotts Miracle-Gro Co. shares /zigman2/quotes/200553749/composite SMG -4.32% rose more than 6% Wednesday, after the provider of lawn and garden and indoor growing products topped estimates for the fourth quarter. The company said it had a net loss of $71.4 million, or $1.28 a share, in the quarter, narrower than the $79.6 million loss, or $1.44 a share, posted in the year-earlier period. The company typically posts a loss in the first quarter, given the seasonal nature of the garden category. Excluding special items, the loss came to $1.12, better than the $1.27 loss consensus of FactSet analysts. Sales rose 23% to $365.8 million from $298.1 million, topping the $342 million FactSet consensus. The company's Hawthorne business, which makes hydroponic equipment and indoor growing products, generated double-digit growth in California and Colorado, two the the biggest cannabis markets in the U.S. Emerging cannabis states Michigan and Florida also showed strong growth, said Chief Executive Jim Hagedorn. "As we look to the balance of the year, we remain confident in our fiscal 2020 guidance of company-wide sales growth of 4 to 6%, adjusted earnings in a range of $4.95 to $5.15 per share and free cash flow of approximately $300 million." Shares have gained 66% in the last 12 months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.82% has gained 24%.

/zigman2/quotes/200553749/composite
US : U.S.: NYSE
$ 105.99
-4.79 -4.32%
Volume: 749,621
Feb. 28, 2020 6:30p
P/E Ratio
12.71
Dividend Yield
2.19%
Market Cap
$5.89 billion
Rev. per Employee
$532,058
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/zigman2/quotes/210599714/realtime
US : S&P US
2,954.22
-24.54 -0.82%
Volume: 5.14B
Feb. 28, 2020 5:06p
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