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Volatility Impacted Scotts Miracle-Gro in 4Q16

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Scotts Miracle-Gro fell

Scotts Miracle-Gro (SMG), a consumer lawn and garden products company, reported its fourth quarter and fiscal earnings last week. Since then, the stock fell almost 5% on November 10. A lot happened in between. The market saw increased volatility with Donald Trump being elected as the 45th US president. Aside from chaos in the markets following the election results, let’s see how Scotts Miracle-Gro performed during the quarter and fiscal year.

Earnings

For 4Q16, Scotts Miracle-Gro reported EPS (earnings per share) of -$0.30 per share—lower than analysts’ estimate of -$0.3 per share. Needless to say, 1Q16 and 4Q16 were slower due to the seasonality in business. On a fiscal basis, the company reported EPS of $3.75—it missed analysts’ estimates of $3.79 per share. However, it met the lower end of the company’s 2016 guidance range of $3.75–$3.95.

Scotts Miracle-Gro products include nutrients, weed and insect protection (SOIL), and tools required for garden and lawn care. While Scotts, an agent of Monsanto (MON), primarily focuses on lawn and garden products, Spectrum Brands (SPB) and Central Garden (CENT) also sell pet care products. You can find the company’s products at Home Depot (HD) or Walmart (WMT).

Series overview

In this series, we’ll focus on the company’s performance for 4Q16 and fiscal 2016. We’ll compare its performance in 2016 with the same periods a year ago. We’ll discuss some of the key metrics that drive’s the company’s performance along with market conditions that challenge or boost the company in the coming year.

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