uploads///SMGs Next  Month EBITDA and Margin Estimates

What Analysts Expect for Scotts Miracle-Gro’s Earnings Margins

By

Oct. 26 2017, Updated 7:40 a.m. ET

EBITDA margins

Similar to the gross margin expectations, the EBITDA (earnings before interest, tax, depreciation, and amortization) margins are also expected to expand for The Scotts Miracle-Gro Company (SMG) in the next four quarters. Let’s look at analysts’ estimates below.

Article continues below advertisement

Analysts’ estimates

For 4Q17, analysts expect that Scotts Miracle-Gro will report an EBITDA income of $11 million, which would result in an EBITDA margin of 3% during the quarter. For the next four quarters, analysts expect an EBITDA of $557 million, which translates into an EBITDA margin of 20.3%. It’s expected to expand from a margin of 19.1% on an EBITDA income of $560 million in the recent four quarters.

The EBITDA margins are estimated to fall slightly by 67 basis points YoY (year-over-year) in the next four quarters. However, the company is estimated to have improved EBITDA margins. Similar to the gross margins, the cost optimization appears to be driving the margin’s improvement.

Peers’ expectations

Central Garden & Pet (CENT) is expected to report an EBITDA margin of 10% in the next four quarters. Spectrum Brands Holdings (SPB) is expected to report an EBITDA margin of 19.4%, while Andersons (ANDE) is expected to report an EBITDA margin of 4.4% in the next four quarters.

In the next part, we’ll discuss the EPS (earnings per share) estimates for Scotts Miracle-Gro compared to its peers (MXI).

Advertisement

More From Market Realist

  • Steel coils at a X plant
    Basic Materials
    U.S. Steel Stock (X) Could Rise More Amid Commodity Supercycle
  • New home construction
    Basic Materials
    How Investors Can Play Surging Lumber Prices in 2021
  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.