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

The Scotts Miracle-Gro Company SMG is set to release third-quarter fiscal 2020 results on Jul 29, before the opening bell.

The company has a trailing four-quarter earnings surprise of 7.6%, on average. The fiscal third-quarter performance is likely to reflect the benefits of higher demand from U.S. Consumer and Hawthorne businesses.

The stock has rallied 40.3% in the past year against the industry’s 25.7% decline.



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

Factors at Play 

The company is witnessing higher demand in both its U.S. Consumer and Hawthorne units.

In June, Scotts Miracle-Gro raised its fiscal 2020 guidance. The company stated that consumer purchases of its products at its largest four retail partners have soared 44% in May. Further, higher consumers planting and maintaining gardens has led to a nearly 40% surge in consumer purchases of Miracle-Gro branded soils and more than 30% increase in plant food. The company also witnessed more than 50% rise in purchase of Ortho outdoor pest control products as well as nearly 40% increase in indoor products. These factors are likely to have supported the U.S. Consumer unit in the fiscal third quarter.

In Hawthorne, fiscal third-quarter performance is likely to reflect strong sales growth across the product portfolio in its older markets such as California and Colorado as well as emerging markets including Michigan, Oklahoma and Florida. 

Q3 Estimates

The Zacks Consensus Estimate for fiscal third-quarter revenues is currently pegged at $1,324 million, which calls for a 13.2% rise year over year.

The Zacks Consensus Estimate for fiscal third-quarter sales in the U.S. Consumer segment is currently pegged at $842 million, which calls for a 5.3% 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 $224 million, which calls for a 27.3% surge from the year-ago quarter's reported figure.

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

What the Zacks Model Says

Our proven model doesn’t predict an earnings beat for Scotts Miracle-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 Scotts Miracle-Gro is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at $3.35. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Scotts Miracle-Gro currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Likely to Beat Estimates

Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Barrick Gold Corporation GOLD, scheduled to release second-quarter 2020 earnings on Aug 10, has an Earnings ESP of +1.06% and carries a Zacks Rank #3.

Kinross Gold Corporation KGC, slated to release second-quarter 2020 earnings on Jul 29, has an Earnings ESP of +4.48% and carries a Zacks Rank #3.

Pan American Silver Corp. PAAS, scheduled to release second-quarter 2020 results on Aug 5, has an Earnings ESP of +38.75% and carries a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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