What's in Store for Scotts Miracle-Gro (SMG) in Q2 Earnings?
The Scotts Miracle-Gro Company
SMG is set to release second-quarter fiscal 2019 results on May 1,
before the opening bell.
The stock has rallied 35.6% year to date, outperforming the
industry’s 6.3% rise.
Few of the Factors at Play
Scotts Miracle-Gro is witnessing its U.S. retailers getting engaged
for the lawn and garden season. During first-quarter fiscal 2019
earnings call, the company stated that it expects to see positive
top-line growth in the fiscal second quarter, provided run rate
exiting January 2019 sustains.
The company expects the trends in the Hawthorne segment to be
positive on a year-over-year basis. Scotts Miracle-Gro is also
expected to benefit from the synergies of the Sunlight Supply
acquisition in the to-be-reported quarter.
What do the Estimates Say?
The Zacks Consensus Estimate for fiscal second-quarter revenues is
currently pegged at $1,161 million, suggesting an increase of 14.6%
year over year.
The Zacks Consensus Estimate for fiscal second-quarter sales in the
Hawthorne segment is currently pegged at $112 million, calling for
an increase of 167.9% from the year-ago quarter's figure.
Zacks Model
Our proven model does not show that Scotts Miracle-Gro is likely to
beat in the estimates to-be-reported quarter. That is because a
stock needs to have a positive Earnings ESP and a Zacks Rank #1
(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not
the case here, as you will see below:
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 $3.42. 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 carries a
Zacks Rank #2, which when combined with a 0.00% ESP makes surprise
prediction difficult. You can see the complete list of
today’s Zacks #1 Rank stocks here.
Note that we caution against stocks with a Zacks Rank #4 (Sell) or
#5 (Strong Sell) going into the earnings announcement, especially
when the company is seeing negative estimate revisions.
The Scotts Miracle-Gro Company Price and EPS Surprise
The Scotts Miracle-Gro Company Price and EPS Surprise | The Scotts Miracle-Gro Company Quote
Stocks Poised to Beat
Estimates
Here are some companies in the same space you may want to consider
as our model shows that they have the right combination of elements
to beat estimates.
Intrepid Potash, Inc IPI has an Earnings ESP of +25.00% and carries
a Zacks Rank #2.
Ingevity Corporation NGVT has an Earnings ESP of +6.77% and carries
a Zacks Rank #3.
Ternium S.A. TX has an Earnings ESP of +6.21% and carries a Zacks
Rank #3.
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