SMG - Why Scotts Miracle-Gro Stock Soared Today
2023-11-01 15:54:17 ET
Shares of Scotts Miracle-Gro (NYSE: SMG) soared on Wednesday after the company reported financial results for its fiscal fourth quarter of 2023, majorly beating Wall Street's estimates on the top line. As of 2 p.m. ET, Scotts Miracle-Gro stock was up 21%
In Q4 (which ended Sept. 30), Scotts Miracle-Gro generated revenue of $375 million, which was down a whopping 24% year over year. The fourth quarter is customarily weak for the company, considering its products are used for agricultural purposes and things slow down as cooler temperatures in North America set in. Wall Street seems to have expected Q4 revenue closer to $330 million, so this is a big relative outperformance.
Scotts Miracle-Gro's profitability was also nonexistent in Q4 as the company moved through inflated inventory, took impairment charges , paid on its high debt load, and more. All told the company had a net loss of $468 million, which was more than it generated in revenue.
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Why Scotts Miracle-Gro Stock Soared Today