Scotts Miracle-Gro (NYSE: SMG) reported Q4 EPS of $0.06, $0.03 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $890.3 million versus the consensus estimate of $889.14 million.

GUIDANCE:

Scotts Miracle-Gro sees FY2021 EPS of $8.00-$8.40, versus the consensus of $7.76.

• The Company established guidance for fiscal 2021 based on an expectation of continued earnings growth in both major segments. Management said it expects sales growth on a company-wide basis of 0 to 5 percent. It expects Hawthorne sales to grow approximately 15 to 20 percent and U.S. Consumer sales to be flat to down 5 percent.
• Non-GAAP adjusted earnings per share are anticipated to be in a range of $8.00 to $8.40 with the gross margin rate declining approximately 50 basis points, a 6 to 11 percent decline in SG&A, and interest expense declining approximately $10 million. Free cash flow is expected to be approximately $325 million.
• “We are extremely well-positioned to deliver another year of strong earnings improvement,” said Randy Coleman, executive vice president and chief financial officer. “We expect first half results for both major segments to trend well above our full-year outlook and to be partly offset by challenging comparisons in the second half of the year. We remain committed, just as we were in 2020, to providing timely updates to investors with as much transparency as possible throughout the year.”
• Management will outline its 2021 expectations in more detail during its scheduled conference call with the investment community at 9 a.m. Eastern time today.

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