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Scotts Miracle-Gro (SMG) to Report Q3 Earnings: What's in Store?

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The Scotts Miracle-Gro Company SMG is set to release third-quarter fiscal 2021 results on Aug 4, before the opening bell. Its fiscal third-quarter performance is likely to reflect benefits of higher demand from U.S. Consumer and Hawthorne businesses.

ScottsMiracle-Gro beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing the same once. The company has a trailing four-quarter earnings surprise of 38.7%, on average. The company posted an earnings surprise of 2.4% in the last reported quarter.

Shares of ScottsMiracle-Gro have gained 15.6% in the past year compared with 64.3% 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 third-quarter revenues is currently pegged at $1,484 million, indicating a 0.6% drop from the prior-year quarter’s level.

The Zacks Consensus Estimate for fiscal third-quarter sales in the U.S. Consumer segment is currently pegged at $995 million, which calls for a 7.5% decline from the year-ago quarter's reported figure.

The Zacks Consensus Estimate for fiscal third-quarter sales in the Hawthorne segment is currently pegged at $387 million, which calls for a 27.7% surge from the year-ago quarter's reported figure.

Factors at Play

The company is likely to have gained from higher demand in both its U.S. Consumer and Hawthorne units in the quarter to be reported.

The company is expected to have benefited from strong retailer support in the U.S. Consumer segment as well as continued momentum in the Hawthorne segment.

In Hawthorne, second-quarter performance is likely to have benefited from strong growth across the product categories, especially hydroponic lighting in North America.

However, the company is expected to have been impacted by high marketing expenses in the quarter. High commodity costs might also have put pressure on margins.

Zacks Model

Our proven model does not 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 -11.66%. The Zacks Consensus Estimate is currently pegged at $3.45. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Scotts MiracleGro Company Price and EPS Surprise

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

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

Stocks That Warrant a Look

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

AdvanSix Inc. ASIX, scheduled to release earnings on Jul 30, has an Earnings ESP of +21.30% and a Zacks Rank #1.

LyondellBasell Industries N.V. LYB, scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and flaunts a Zacks Rank #1.

Westlake Chemical Company WLK, scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and flaunts a Zacks Rank #1.


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Westlake Chemical Corporation (WLK) : Free Stock Analysis Report

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

LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report

AdvanSix Inc. (ASIX) : Free Stock Analysis Report

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