Back to top

Image: Shutterstock

Scotts Miracle-Gro Issues Fiscal 2020 Update on Strong Demand

Read MoreHide Full Article

The Scotts Miracle-Gro Company (SMG - Free Report) has provided an update for its fiscal 2020 view. The company expects net sales and adjusted earnings per share (EPS) to surpass its prior guidance issued in July.

For fiscal 2020 (ending Sep 30, 2020), the company now projects adjusted EPS to be around $7.25 compared with previous guidance of $6.65-$6.85. This is likely to be driven by company-wide sales growth of more than 30%.

Per Scotts Miracle-Gro, the momentum in the U.S. Consumer and Hawthorne segments is exceeding the company’s expectations. Its key business drivers over the past six months have been highly engaged retailer support and strong consumer demand. The company expects the trend to continue into the first quarter of fiscal 2021. Further, it expects lower expenses to act as tailwind next year.

Shares of Scotts Miracle-Gro have rallied 58% in the past year against the industry’s 12.6% decline.    

 

 

Scotts Miracle-Gro is expected to benefit from the healthy long-term prospects associated with its Hawthorne division. It is also witnessing strong demand in the U.S. Consumer unit. Also, profitability in the U.S. Consumer and Hawthorne segment rose 14% and 145% year over year, respectively, in third-quarter fiscal 2020. The momentum is likely to have continued in the fiscal fourth quarter.

Zacks Rank & Other Key Picks

Scotts Miracle-Gro currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Eldorado Gold Corporation (EGO - Free Report) , Kirkland Lake Gold Ltd. and Yamana Gold Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Eldorado Gold has an expected earnings growth rate of 2,325% for 2020. The company’s shares have surged 33.7% in the past year.

Kirkland Lake Gold has an expected earnings growth rate of 22.6% for 2020. Its shares have returned 17% in the past year.

Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 82.1% in the past year.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Scotts Miracle-Gro Company (SMG) - free report >>

Eldorado Gold Corporation (EGO) - free report >>

Published in