The Scotts Miracle-Gro Company (SMG) reported its 1Q17 earnings on May 2, 2017, with earnings per share (or EPS) of $2.78. It missed analysts’ consensus estimate of $2.98 per share, resulting in its stock’s falling ~4.3% on May 2.
Scotts Miracle-Gro primarily serves the lawn and gardening sector. Read more about the company in The Scotts Miracle-Gro Company: What’s Its Secret?
Two analysts had “strong buy” recommendations on Scotts Miracle-Gro for the next-12-month period, unchanged from the previous round of recommendations in February 2017. Three analysts had “buy” recommendations on the stock, and five had “hold” recommendations on the stock.
Scotts Miracle-Gro produces a variety of easily recognizable brands, and the company can command a premium for these products. In contrast, the volatility of the commodity business could significantly impact the profitabilities of companies such as PotashCorp (POT), Agrium (AGU), and CF Industries (CF), which primarily deal in fertilizers (MOO).
In February, analysts’ consensus price target for The Scotts Miracle-Gro Company stood at $99.3 per share for the next 12 months. This target could mean a 10.5% upside on the stock if its price converges with analysts’ target price.
Next, let’s discuss Sociedad Química y Minera de Chile (SQM).