The ScottsMiracle-Gro Company SMG recently announced that it now expects to report positive growth in its U.S. Consumer segment for fiscal 2021, which suggests an increase from its earlier sales guidance of flat to- 5%.
With the projected growth in the U.S. Consumer segment, the company anticipates to surpass its current earnings guidance of $8.00-$8.40 per share on an adjusted basis. The company expects to provide specific updated ranges for sales and earnings per share (EPS) later this spring.
The company’s shipments are well ahead of previous year’s base as retailers prepare for the peak of the lawn and garden season. The consumer purchases of the company products at the largest retailers have increased 25% percent year-to-date.
Shares of ScottsMiracle-Gro have surged 73.7% in the past year compared with 56.1% rise of the industry.
The company, last month, reported strong results for first-quarter fiscal 2021, with earnings and sales topping expectations. Adjusted EPS of 39 cents per share rose 134.8% year over year and surpassed the Zacks Consensus Estimate of a loss of 73 cents.
Net sales also surged 104.6% year over year to $748.6 million and beat the consensus mark of $616 million. The upside was primarily driven by strong retailer support in the U.S. Consumer segment and continued momentum in the Hawthorne segment.
Zacks Rank & Other Key Picks
ScottsMiracle-Gro currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals GroupLimited FSUGY, BHP Group (NYSE:BHP) BHP and Impala Platinum (OTC:IMPUY) Holdings Limited IMPUY.
Fortescue has a projected earnings growth rate of 95.4% for the current fiscal. The company’s shares have surged around 176.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 69.2% for the current fiscal. The company’s shares have gained 88% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 186.9% for the current fiscal. The company’s shares have rallied around 123.1% in the past year. It currently flaunts a Zacks Rank #2.
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