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Scotts Miracle-Gro (SMG) to Post Q2 Earnings: What's in Store?

·4 min read

The Scotts Miracle-Gro Company SMG is set to release second-quarter fiscal 2022 results on May 3, before the opening bell.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing the same once. The company has a trailing four-quarter earnings surprise of 2.74%, on average. It posted a negative earnings surprise of 8.64% in the last reported quarter.

SMG’s fiscal second-quarter performance is likely to reflect the benefits of strength in the U.S. Consumer segment and its pricing and cost-saving actions.

Shares of ScottsMiracle-Gro have declined 56.1% in the past year compared with 57.5% rise of the industry.

Zacks Investment Research
Zacks Investment Research


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Let’s see how things are shaping up for this announcement.

What do the Estimates Indicate?

The Zacks Consensus Estimate for fiscal second-quarter revenues is currently pegged at $1,651 million, which calls for a 9.7% decline year over year.

The Zacks Consensus Estimate for fiscal second-quarter sales in the U.S. Consumer segment is currently pegged at $1,333 million, suggesting a 3% decline from the year-ago quarter's reported figure.

The Zacks Consensus Estimate for fiscal second-quarter sales in the Hawthorne segment is currently pegged at $207 million, indicating a 43.1% decline from the year-ago quarter's reported figure.

Factors at Play

The company’s second-quarter performance is likely to have benefited from continued strength in the U.S. Consumer segment. It is also likely to have gained from pricing actions and cost savings in the quarter.

The company is expected to have been affected by high commodity and distribution costs. Its Hawthorne segment is likely to have faced headwinds in sales due to an oversupply of cannabis, which is leading to a holdback in indoor and outdoor cultivation. As such, sales in this segment are likely to have been affected in the second quarter.

Zacks Model

Our proven model does not conclusively predict an earnings beat for ScottsMiracle-Gro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for ScottsMiracle-Gro is +0.00%. The Zacks Consensus Estimate is currently pegged at $4.69. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ScottsMiracle-Gro currently carries a Zacks Rank #4 (Sell).

The Scotts MiracleGro Company Price, Consensus and EPS Surprise

The Scotts MiracleGro Company Price, Consensus and EPS Surprise
The Scotts MiracleGro Company Price, Consensus and EPS Surprise

The Scotts MiracleGro Company price-consensus-eps-surprise-chart | The Scotts MiracleGro Company Quote

Other Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

The Chemours Company CC, scheduled to release earnings on May 2, has an Earnings ESP of +3.83% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chemours’ first-quarter earnings has been revised 2.2% upward in the past 60 days. The consensus estimate for CC’s earnings for the quarter is currently pegged at 92 cents.

Nutrien Ltd. NTR, slated to release earnings on May 2, has an Earnings ESP of +0.55% and sports a Zacks Rank #1.

The consensus estimate for Nutrien’s first-quarter earnings has been revised 1.9% upward in the past 60 days. The Zacks Consensus Estimate for NTR’s earnings for the quarter is pegged at $2.59.

The Mosaic Company MOS, scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward in the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Scotts MiracleGro Company (SMG) : Free Stock Analysis Report

The Mosaic Company (MOS) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

Nutrien Ltd. (NTR) : Free Stock Analysis Report

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