The Scotts Miracle-Gro Company (SMG) is expected to announce its 4Q17 earnings on November 2, 2017. It’s expected to report a loss per share of $0.29, which will be slightly better than its loss per share of $0.31 in 4Q16.
Scotts Miracle-Gro’s performance
Scotts Miracle-Gro had an impressive return of 48% in 2016. It managed to easily beat the S&P 500 Index’s (SPY) 9.5% and the VanEck Vectors Agribusiness ETF’s (MOO) 10.4% during the same period. However, the company has had a lackluster performance in the trailing 12-month period as of October 24, 2017. It has returned ~12.4%, while the S&P 500 Index returned 19.4% and the Agribusiness ETF MOO returned 21% during the same period. During this trailing 12-month period, Spectrum Brands Holdings (SPB) delivered a loss of 19.1%, while HRG Group (HRG) returned 3.9%. Central Garden & Pet (CENT) rose as much as 51% during the same period.
In the past few years, the company engaged in several M&A (mergers and acquisition) activities. The M&A activities were the primary growth driver in the company’s stock price last year. The company will likely focus on translating the acquisitions into bottom-line growth.
In this series, we’ll discuss analysts’ expectation for Scotts Miracle-Gro’s upcoming earnings. We’ll look at estimates for its revenue, gross margins, EBITDA (earnings before interest, tax, depreciation, and amortization) margins, earnings per share expectations, valuation, and analysts’ target price for the company.