What to Expect From Scotts Miracle-Gro

Scotts Miracle-Gro (NYS: SMG) is expected to report Q3 earnings on Thursday. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Scotts Miracle-Gro's revenues will grow 6.4% and EPS will increase 7.7%.

The average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $1.96.


Revenue details
Last quarter, Scotts Miracle-Gro notched revenue of $1.17 billion. GAAP reported sales were 3.9% higher than the prior-year quarter's $1.13 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $2.15. GAAP EPS of $2.05 for Q2 were 22% lower than the prior-year quarter's $2.63 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.4%, 160 basis points worse than the prior-year quarter. Operating margin was 19.1%, 260 basis points worse than the prior-year quarter. Net margin was 10.8%, 490 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $2.95 billion. The average EPS estimate is $2.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 228 members rating the stock outperform and 31 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Scotts Miracle-Gro a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scotts Miracle-Gro is hold, with an average price target of $49.20.

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The article What to Expect From Scotts Miracle-Gro originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Scotts Miracle-Gro Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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