What's in Store for Scotts Miracle-Gro (SMG) in Q4 Earnings?
Zacks Investment Research | Nov 01, 2021 01:08AM ET
The Scotts Miracle-Gro Company (NYSE:SMG) industry .
Let’s see how things have shaped up for this announcement.
What Do the Estimates Indicate?
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $716 million, indicating a 19.5% decline from the prior-year quarter’s level.
The Zacks Consensus Estimate for fiscal fourth-quarter sales of the U.S. Consumer segment is currently pegged at $276 million, which implies a 44.5% decline from the year-ago quarter's reported figure.
The Zacks Consensus Estimate for fiscal fourth-quarter sales of the Hawthorne segment is currently pegged at $399 million, which indicates a 13.3% rise from the year-ago quarter's reported figure.
Factors at Play
Hawthorne’s fourth-quarter performance is likely to have benefited from strong growth across the product categories, especially hydroponic lighting in North America. It is also likely to have gained from cost savings in the quarter.
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.
It has also been witnessing headwinds in the U.S. Consumer division, which are likely to hurt the company’s results.
Zacks Model
Our proven model does not conclusively predict an earnings beat for ScottsMiracle-Gro this time around. The combination of a positive ALB , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
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