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Bull Of The Day: Scotts Miracle-Gro (SMG)

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Scotts Miracle-Gro (SMG - Free Report) is a Zacks Rank #1 (Strong Buy) and it recently posted a super strong beat and raise quarter.  Just the numbers caught my attention but digging deeper, I saw other things I liked.

One of the other things that I like was the previous Bull of the Day on SMG written on 4/29 by the man with the best email address at Zacks.  Ben Rains is his name and picking winners is his game!  Here is his Bull of the Day article on the company (

Beat And Raise

Let's take a look at that quarter that caught my eye.

SMG reported EPS of $3.80 when $3.35 was the Zacks Consensus Estimate.  That is a big beat of 45 cents or a 13.4% positive earnings surprise.

The previous quarter was a 43 cent beat and a 10.5% positive earnings surprise.

The guidance is what caught my eye for this stock.  Before we get to the numbers, let’s go over why I think a beat and raise is almost always the best thing that can happen to a stock (besides a buyout). I like to say a beat and raise is like six months of good news all at once. If you think about it, that is a really powerful thing for a stock.

The company beat estimates for the quarter, so the last 3 months were better than expected. That is good news. When they raise guidance (above the consensus) then the next three months are now looking better than expected as well. Put that together and you have 6 months of good news all at once.

The company guided FY20 for EPS of between $6.65 and $6.85 and that is a big step up from $5.65 - $5.85 when guidance was previously given.  The company also sees the topline reaching $3.97B to $4.04B when the estimate was calling for $3.69B

That is a good looking beat and raise!

Estimate Revisions

The next two quarters will be losses for SMG, as the company is looking at a loss of 91 cents for the current quarter and a loss of $1.08 for next quarter.

The Zacks Rank, however, look mor ath the full year numbers.  The fiscal 2020 year has seen an increase in EPS esimates from $5.26 to $5.79 over the last 60 days.  The following year has seen a jump of 33 cents to $6.06 over that same time horizon.


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