Scotts Miracle-Gro (NYSE: SMG) reported Q1 EPS of ($1.12), $0.15 better than the analyst estimate of ($1.27). Revenue for the quarter came in at $365.8 million versus the consensus estimate of $341.67 million.

• Hawthorne segment sales increase 41%; U.S. Consumer segment sales increase 8%
• GAAP loss of $1.28 per share compared with $1.49 per share
• Non-GAAP adjusted loss of $1.12 per share versus $1.39 per share
• Full year guidance for sales, non-GAAP adjusted EPS and cash flow reaffirmed

“We continue to see outstanding performance across all product categories of our Hawthorne business in the United States, with double-digit growth in long-standing markets such as California and Colorado and even stronger performance in emerging markets like Michigan and Florida,” said Jim Hagedorn, chairman and chief executive officer. “Hawthorne continues to distance itself from its largest competitors as indoor growers see us as a complete solution for their needs.

“The strong momentum we saw in our U.S. Consumer segment last year also carried into fiscal 2020. We remain encouraged by the level of retailer engagement in all channels as we prepare for the upcoming lawn and garden season. 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 percent, adjusted earnings in a range of $4.95 to $5.15 per share and free cash flow of approximately $300 million.”

“The momentum in Hawthorne and the strong listing support with our retail partners give us confidence in both major reporting segments as we prepare for the most critical months of the fiscal year,” said Randy Coleman, chief financial officer. “We also have good visibility on our commodity costs for the year and remain disciplined in managing our day-to-day expenses. Additionally, we have reinitiated share repurchases and anticipate buying shares throughout the year. The combination of all of these factors gives us confidence not only in our financial guidance, but in our ability to further enhance shareholder value.”

GUIDANCE:

Scotts Miracle-Gro sees FY2020 EPS of $4.95-$5.15, versus the consensus of $5.04.

For earnings history and earnings-related data on Scotts Miracle-Gro (SMG) click here.