Scotts Miracle-Gro Reaffirms $1B Cash Flow Target, Reduces EBITDA Earnings Expectations, Cost-Saving On Track
Portfolio Pulse from Nina Zdinjak
Scotts Miracle-Gro (NYSE: SMG) has updated its financial projections for fiscal year 2024, reducing its adjusted EBITDA expectations to $530-$540 million, down from $575 million. The company reaffirmed its $1 billion cash flow target and cost-saving initiatives. Hawthorne, its cannabis-focused subsidiary, is expected to break even by year-end and may benefit from a merger with RIV Capital and Cansortium Inc. Shares of SMG were trading 0.92% lower at $66.91 during Friday's pre-market session.
June 07, 2024 | 12:29 pm
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NEGATIVE IMPACT
Scotts Miracle-Gro has reduced its adjusted EBITDA expectations for FY 2024 to $530-$540 million, down from $575 million. The company reaffirmed its $1 billion cash flow target and cost-saving initiatives. Shares were trading 0.92% lower pre-market.
The reduction in EBITDA guidance is likely to negatively impact investor sentiment in the short term, leading to a potential decrease in stock price. However, the reaffirmation of the cash flow target and cost-saving initiatives may mitigate some of the negative impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Hawthorne, a subsidiary of Scotts Miracle-Gro, may benefit from a merger with RIV Capital and Cansortium Inc. This merger could provide Hawthorne with a significant stake in a new operator across four states.
The potential merger with RIV Capital and Cansortium Inc. could provide Hawthorne with a significant stake in a new operator, which may positively impact its financial performance and investor sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70