NYSE$SMG

Scotts Miracle-Gro Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ScottsMiracle-Gro reported fiscal 2023 second quarter results, with U.S. Consumer first half sales in line with the record prior two years and GAAP EPS of $1.94.

ScottsMiracle-Gro reported a decrease in company-wide sales by 9 percent to $1.53 billion. U.S. Consumer segment sales decreased 2 percent to $1.36 billion. The company reported GAAP income of $1.94 per diluted share and non-GAAP adjusted earnings of $3.78 per diluted share.

  • U.S. Consumer net sales decreased 2 percent versus record high sales in the same period last year.
  • Hawthorne segment sales decreased 54 percent.
  • Company-wide sales decreased 9 percent to $1.53 billion.
  • The Company reported GAAP income of $1.94 per diluted share for the quarter and non-GAAP adjusted earnings was $3.78 per diluted share.

Headline financials

Total Revenue

$1.53B

Previous: $1.68B-8.8%
EPS (adj)

$3.78

Previous: $5.03-24.9%
Capital Expenditures

-$51.8M

Previous: -$66M+21.5%
Free Cash Flow

$57.6M

Previous: $211M-72.6%
Net Income

$109M

Previous: $277M-60.4%
Operating Income

$206M

Previous: $388M-46.8%
Gross Profit

$413M

Previous: $588M-29.9%
Cash & Equivalents

$25M

Previous: $17.1M+46.2%
Total Assets

$4.99B

Previous: $6.21B-19.6%
Stock-Based Comp

$37.4M

Previous: $15.9M+135.2%

Revenue & EPS history

Scotts · Revenue · Quarterly

$1.53B

Q2 2023-8.8%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Scotts · $1.44B total across 2 segments · Q2 2023

  • U.S. Consumer
    $1.36B-1.6%
  • Other
    $81.4M-15.2%

Forward guidance

The Company’s current outlook for fiscal 2023 as compared to fiscal 2022 includes a near 100 basis points decline in gross margin rate, a mid single-digits percentage decline in adjusted operating income, a low single-digits percentage decline in adjusted EBITDA, an interest expense increase of approximately $60 million, an effective tax rate of 27 to 28 percent and free cash flow of $1 billion over the next two years.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

-0.7%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+18.2%

Q4 2023

Best reaction

-21.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-4.6%-9.2%-9.8%
Q1 2026-0.6%-0.1%-10.8%
Q4 2025+2.8%+4.6%-1.2%
Q2 2025-5.9%+4.9%+11.2%
Q1 2025-5.8%-8.5%-22.7%
Q4 2024-21.9%-20.4%-19.3%
Q3 2024+7.1%+0.7%+1.1%
Q2 2024+0.2%+4.2%+1.7%
Q1 2024+4.6%+5.0%+23.4%
Q4 2023+18.2%+19.3%+30.9%
Q3 2023-21.1%-23.2%-23.0%
Q2 2023-7.6%+4.7%-3.7%
Q1 2023+16.2%+12.3%+18.1%
Q4 2022+8.9%+11.5%+20.3%
Q3 2022-8.2%-5.3%-30.0%
Q2 2022+9.9%-1.3%-8.9%
Q1 2022-6.6%-12.1%-8.0%
Q4 2021+11.5%+13.6%-8.9%
Q3 2021-8.2%-7.9%-9.7%
Q2 2021+5.5%+6.1%-11.7%
Q1 2021+3.6%+4.8%-12.0%
Q4 2020+8.3%-1.5%+10.0%
Q3 2020+8.1%+8.7%+15.4%
Q2 2020+4.3%+5.7%+3.2%
Q1 2020+10.5%+13.3%-3.0%
Q4 2019+4.8%+9.2%+5.2%
Q3 2019+5.5%+5.0%+2.9%
Q2 2019+6.8%+9.3%+5.3%
Q1 2019+6.3%+8.3%+17.0%
Q4 2018+10.3%+8.4%-1.9%
Q3 2018-1.0%+1.7%-4.0%
Q2 2018-7.3%-2.5%+1.9%
Q1 2018-15.8%-15.6%-15.9%
Q4 2017-0.2%-0.5%+2.3%
Q3 2017-0.3%+1.0%-0.4%
Q2 2017-8.5%-7.2%-9.4%
Q1 2017-2.2%-3.1%-1.9%
Q4 2016+0.5%+2.6%+4.8%
Q3 2016+7.7%+12.0%+12.8%
Q2 2016-3.8%
Q1 2016-3.9%
Q4 2015+1.4%
Q3 2015+8.6%
Q2 2015+2.0%
Q1 2015+2.1%
Q4 2014+0.6%
Q3 2014+4.6%
Q2 2014-0.9%
Q1 2014-0.4%
Q4 2013-0.5%
Q3 2013+0.5%
Q2 2013+5.7%
Q1 2013+0.1%
Q4 2012-4.8%
Q3 2012+4.1%
Q2 2012-16.2%
Q1 2012+4.9%
Q4 2011-1.6%
Q3 2011+0.8%
Q2 2011-0.8%
Q1 2010+0.0%
Q1 2011+0.0%
Q4 2010+1.0%
Q4 2008+1.0%
Q2 2010+1.0%
Q3 2009+1.3%
Q3 2010+1.3%
Q4 2009+1.3%

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