Thursday, lawn and garden products maker Scotts Miracle-Gro Co. (SMG) reported a narrower loss for its fourth quarter, helped by lower interest expenses and a higher income tax benefit. The company also provided guidance for fiscal 2010.
The Marysville, Ohio-based company's fourth-quarter net loss narrowed to to $14.9 million or $0.23 per share from a net loss of $34.7 million or $0.54 per share a year ago.
On a non-GAAP basis, net loss widened to $21.5 million or $0.33 per share from $17.5 million or $0.27 per share in the prior-year quarter. Non-GAAP net income excludes impairment, restructuring and other charges, and product registration and recall matters.
On average, 12 analysts polled by Thomson Reuters estimated a loss of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter increased 7% to $583.4 million from $544.2 million for the fourth quarter of 2008. Analysts expected revenues of $555.67 million for the quarter.
Segment wise, revenue from global consumer division increased 11% to $364.4 million while revenue from global professional declined 12% to $77.7 million. Revenue from Scotts LawnService fell 105 to $80.5 million.
Gross profit for the quarter rose 31% to $159.7 million from $121.7 million in the year-earlier quarter, while gross profit margin increased to 27.4% from 22.4% in the fourth quarter of 2008.
The company's loss from operations widened 7% to $42.7 million from $39.8 milling during the fourth quarter.
Interest expense for the quarter decreased to $10.5 million from $17.6 million a year ago.
The company had a higher income tax benefit of $38.3 million, compared to $22.7 million in the year-earlier quarter.
For fiscal 2009, the company reported net income of $153.3 million or $2.32 per share, compared to net loss of $10.9 million or $0.17 per share last year. Revenue for the quarter increased 5% to $3.14 billion from $2.98 billion last year.
Looking forward to fiscal 2010, the company expects earnings in the range of $3.00 to $3.10 per share while it assumes sales growth of 3 to 5%. On average, analysts currently expect earnings of $3.05 per share on revenues of $3.10 billion for fiscal 2010.
SMG is gaining $1.26 or 3%, and is trading at $43.31 on a volume of 41 thousand shares on the New York Stock Exchange.
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