Scotts Miracle-Gro (NYSE:SMG) Announces Earnings Results, Beats Estimates By $0.34 EPS

Scotts Miracle-Gro (NYSE:SMG) announced its quarterly earnings data on Wednesday. The basic materials company reported $2.82 EPS for the quarter, beating the consensus estimate of $2.48 by $0.34, FiscalAI reports. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.17 billion. Scotts Miracle-Gro had a net margin of 3.27% and a negative return on equity of 79.61%. Scotts Miracle-Gro’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.59 EPS.

Here are the key takeaways from Scotts Miracle-Gro’s conference call:

• Positive Sentiment: Scotts Miracle-Gro reaffirmed its fiscal 2026 outlook and raised adjusted EPS guidance to $4.30–$4.45, up from $4.15–$4.35.
• Positive Sentiment: Year-to-date adjusted EBITDA increased 5% to $686.6 million, while leverage improved to 3.78x from 4.15x a year ago as strong free cash flow supported debt reduction.
• Positive Sentiment: The company is shifting toward higher-margin branded products, with branded sales up 4.5%, e-commerce POS up 27%, and recent innovation generating $278 million in gross sales over the last three years.
• Negative Sentiment: Retailer inventories were elevated by high-single-digit percentages after early-May weather softness, and management expects fourth-quarter purchasing activity to slow, likely pushing U.S. consumer sales growth to the low end of its guidance.
• Neutral Sentiment: Management is reassessing capital allocation and may pursue its $1 billion sales and EBITDA targets beyond 2030, prioritizing consistent quality earnings growth, margin expansion, leverage below 3.5x, reinvestment, dividends, and a measured share-repurchase program.

Scotts Miracle-Gro Trading Down 3.5%

Scotts Miracle-Gro stock traded down $2.55 during midday trading on Wednesday, hitting $70.55. The stock had a trading volume of 686,550 shares, compared to its average volume of 938,228. Scotts Miracle-Gro has a 52-week low of $52.00 and a 52-week high of $75.34. The company has a market capitalization of $4.10 billion, a PE ratio of 39.32 and a beta of 1.81. The firm’s fifty day moving average is $64.28 and its two-hundred day moving average is $64.15.

Scotts Miracle-Gro Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Friday, August 21st. Scotts Miracle-Gro’s dividend payout ratio is currently 147.49%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on SMG. Weiss Ratings reissued a “hold (c)” rating on shares of Scotts Miracle-Gro in a research report on Monday, May 4th. Wall Street Zen upgraded Scotts Miracle-Gro from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Jefferies Financial Group reissued a “buy” rating and issued a $79.00 target price on shares of Scotts Miracle-Gro in a report on Wednesday, April 29th. UBS Group boosted their price target on Scotts Miracle-Gro from $63.00 to $70.00 and gave the stock a “neutral” rating in a research note on Thursday, July 16th. Finally, Stifel Nicolaus lowered their price target on Scotts Miracle-Gro from $76.00 to $75.00 and set a “buy” rating on the stock in a report on Monday, June 8th. Three research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Scotts Miracle-Gro presently has a consensus rating of “Hold” and an average target price of $73.00.

Trending Headlines about Scotts Miracle-Gro

Here are the key news stories impacting Scotts Miracle-Gro this week:

• Positive Sentiment: SMG reported fiscal Q3 adjusted EPS of $2.82, above analyst estimates ranging from $2.48 to $2.53 and up from $2.59 a year ago. Scotts Miracle-Gro Tops Q3 Earnings Estimates
• Positive Sentiment: The company raised fiscal 2026 adjusted EPS guidance to $4.30-$4.45, from $4.15-$4.35, citing accelerated EPS growth. It also reaffirmed low-single-digit U.S. Consumer sales growth and $275 million of free cash flow. ScottsMiracle-Gro Reports Third Quarter Results
• Positive Sentiment: Net leverage improved to 3.78 times from the prior year, supporting the company’s balance-sheet improvement efforts.
• Positive Sentiment: SMG declared its regular $0.66-per-share quarterly dividend, payable September 4 to shareholders of record August 21. The indicated annualized yield is approximately 3.9%. Scotts Miracle-Gro Announces Quarterly Dividend Payment
• Neutral Sentiment: Quarterly revenue increased just 1.1% year over year to $1.17 billion, essentially matching Wall Street expectations. A post-earnings analysis argued that the selloff may represent a buying opportunity for investors focused on the improved outlook. Scotts Miracle-Gro Post-Earnings Sell-Off Is a Buying Opportunity
• Negative Sentiment: GAAP net income fell to $112.2 million from $149.1 million, while GAAP EPS from continuing operations declined 34% to $1.75. Gross margin also contracted 90 basis points to 31.2%, highlighting ongoing profitability pressure.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Scotts Miracle-Gro by 13.3% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 5,409 shares of the basic materials company’s stock worth $308,000 after purchasing an additional 636 shares during the period. Daiwa Securities Group Inc. lifted its stake in shares of Scotts Miracle-Gro by 6.1% during the 4th quarter. Daiwa Securities Group Inc. now owns 5,077 shares of the basic materials company’s stock worth $296,000 after acquiring an additional 294 shares during the last quarter. Quadrature Capital Ltd bought a new position in Scotts Miracle-Gro in the 4th quarter valued at $286,000. Boothbay Fund Management LLC purchased a new stake in Scotts Miracle-Gro in the fourth quarter worth $274,000. Finally, Rehmann Capital Advisory Group lifted its position in shares of Scotts Miracle-Gro by 16.8% during the third quarter. Rehmann Capital Advisory Group now owns 4,503 shares of the basic materials company’s stock worth $257,000 after purchasing an additional 648 shares during the last quarter. 74.07% of the stock is currently owned by institutional investors.

Scotts Miracle-Gro Company Profile

Scotts Miracle-Gro Company is a leading developer, manufacturer and distributor of consumer lawn and garden products. The firm serves both retail and professional customers through an array of branded offerings that include lawn fertilizers, grass seed, pest and disease control solutions, plant foods and specialty products for indoor and outdoor gardening. Its portfolio spans well-known names such as Scotts®, Miracle-Gro®, Ortho® and various hydroponic and specialty garden brands.

Headquartered in Marysville, Ohio, the company traces its roots to O.M.