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ScottsMiracle-Gro (SMG) Lowers Sales and EPS Outlook for FY22

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The ScottsMiracle-Gro Company (SMG - Free Report) lowered its outlook for sales and adjusted earnings for fiscal 2022, citing various factors. This was despite the surge in consumer purchases of its core lawn and garden brands in May, with unit volume now trending toward its original assumptions for the season.

Adjusted earnings per share are now projected between $4.50 to $5 for fiscal 2022. U.S. Consumer sales are anticipated to decline 4-6%. Hawthorne sales are expected to fall 40-45% for the year ending Sep 30, 2022.

Hawthorne sales had started showing signs of strengthening heading into May. Still, momentum in the business slowed again during the month as expected improvement in outdoor cultivation has been slow to materialize.

The consumer purchases at its largest retail partners were at near-record levels in May, leading to a year-to-date POS that is roughly 6% lower in dollars and 9% lower in units than year-ago levels. The year-over-year decline at the end of May was half of what it had been entering the month, thanks to strong results in all major markets in the Midwest and Northeast, the company noted.

Shares of Scotts Miracle-Gro have plunged 52% in the past year against a 48.3% rise of the industry.

Zacks Investment Research
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Zacks Rank & Key Picks

Scotts Miracle-Gro currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and The Chemours Company (CC - Free Report) .

Allegheny has a projected earnings growth rate of 953.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 31.7% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 13.6% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutrien has a projected earnings growth rate of 163.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 26.8% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 36.8% in a year. The company flaunts a Zacks Rank #1.

Chemours, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 30.5% for the current year. The Zacks Consensus Estimate for CC's earnings for the current year has been revised 15.2% upward in the past 60 days.

Chemours’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 28.7%. CC has gained around 17% over a year.


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