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ScottsMiracle-Gro (SMG) Lowers Hawthorne Sales and EPS Outlook
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The ScottsMiracle-Gro Company (SMG - Free Report) announced a reduction in its full-year sales guidance for the Hawthorne segment. It also noted that this reduction could lead to lower-than-expected adjusted earnings per share (EPS).
The company projects Hawthorne sales to fall 15-25%, including the benefit of acquisitions. The segment has been facing headwinds in sales for a few months due to an oversupply of cannabis, which is leading to a holdback in indoor and outdoor cultivation.
With the reduction in Hawthorne sales guidance, the company is unlikely to reach the low end of its adjusted EPS guidance. Management is optimistic about the continued strength in the U.S. Consumer segment and is working to mitigate the earnings gap from the shortfall in Hawthorne sales with the aim to achieve adjusted earnings per share of at least $8.
ScottsMiracle-Gro also noted that it no longer anticipates any significant acquisition in fiscal 2022 to boost its presence in the live goods category. The company has ended those discussions.
The consumer purchases in March are flat from the year-ago levels. Shipments to retailers through five months are at record levels, the company noted.
Shares of Scotts Miracle-Gro have declined 45.4% in the past year against a 54.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 19.5% over a year.
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 76% in a year.
AdvanSix has a projected earnings growth rate of 17.3% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 12.4% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 12.4%. ASIX has surged 40.8% in a year. The company carries a Zacks Rank #2.
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ScottsMiracle-Gro (SMG) Lowers Hawthorne Sales and EPS Outlook
The ScottsMiracle-Gro Company (SMG - Free Report) announced a reduction in its full-year sales guidance for the Hawthorne segment. It also noted that this reduction could lead to lower-than-expected adjusted earnings per share (EPS).
The company projects Hawthorne sales to fall 15-25%, including the benefit of acquisitions. The segment has been facing headwinds in sales for a few months due to an oversupply of cannabis, which is leading to a holdback in indoor and outdoor cultivation.
With the reduction in Hawthorne sales guidance, the company is unlikely to reach the low end of its adjusted EPS guidance. Management is optimistic about the continued strength in the U.S. Consumer segment and is working to mitigate the earnings gap from the shortfall in Hawthorne sales with the aim to achieve adjusted earnings per share of at least $8.
ScottsMiracle-Gro also noted that it no longer anticipates any significant acquisition in fiscal 2022 to boost its presence in the live goods category. The company has ended those discussions.
The consumer purchases in March are flat from the year-ago levels. Shipments to retailers through five months are at record levels, the company noted.
Shares of Scotts Miracle-Gro have declined 45.4% in the past year against a 54.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 19.5% over a year.
Mosaic, sporting a Zacks Rank #1, has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 76% in a year.
AdvanSix has a projected earnings growth rate of 17.3% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 12.4% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 12.4%. ASIX has surged 40.8% in a year. The company carries a Zacks Rank #2.