Can Scotts Miracle-Gro Meet These Numbers?

Scotts Miracle-Gro (NYSE: SMG  ) is expected to report Q1 earnings on Feb. 5. 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 compress -5.5% and EPS will remain in the red.

The average estimate for revenue is $199.6 million. On the bottom line, the average EPS estimate is -$1.13.

Revenue details
Last quarter, Scotts Miracle-Gro reported revenue of $401.2 million. GAAP reported sales were 0.5% lower than the prior-year quarter's $381.2 million.

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 -$0.59. GAAP EPS were -$0.66 for Q4 against -$0.87 per share for the prior-year quarter.

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 28.4%, 280 basis points worse than the prior-year quarter. Operating margin was -9.2%, 670 basis points worse than the prior-year quarter. Net margin was -10.6%, 340 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.88 billion. The average EPS estimate is $2.63.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 219 members out of 249 rating the stock outperform, and 30 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Scotts Miracle-Gro a green thumbs-up, and nine 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 $40.75.

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