SMG stock continues to hit new highs after Scotts Miracle-Gro (NYSE:SMG) announced its financial results for the fourth quarter on Wednesday. The earnings proved to be a positive trigger for the company’s stock as Scotts Miracle-Gro managed to beat analysts’ expectations in the quarter.
Losses for the fourth quarter stood at $71.4 million, which works out to $1.28 a share. However, it was lower than the prior-year period, when Scotts generated a loss of $79.6 million and a per-share loss of $1.44. It did not come as a surprise when investors piled on to the stock this week.
It could be worthwhile for investors to track SMG stock today. The company’s sales for the period jumped to $365.8 million, which is a healthy 23% jump from $298.1 million in the prior-year period. It beat analysts’ estimates of $342 million by a significant margin as well.
SMG stock is trading higher by 0.45% at $121.35 after hitting an all-time high of $122.13 earlier in the session.
However, one of the major factors behind the company’s performance in this quarter is the growth of the cannabis industry in California and Colorado. Scotts Miracle-Gro’s Hawthorne business managed to generate growth in the double digits, much of which was generated through sales of indoor growing products in those two states.
The cannabis industry has been growing at a remarkable rate in Colorado and California, which is why investors can hope that the company could continue to grow its business in this particular space. Scotts Miracle-Gro has also shown meaningful growth in the states of Florida and Michigan, which have also legalized cannabis production.
Jim Hagedorn, the Chief Executive Officer of the company, revealed that he is confident that Scotts is going to meet the projections of sales growth in the 4% to 6% range in 2020. Investors could keep an eye on SMG stock over the coming days to see what happens.
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