Scotts Miracle-Gro (NYSE:SMG) Posts Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Scotts Miracle-Gro (NYSE:SMG) posted its earnings results on Wednesday. The basic materials company reported ($0.77) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.04) by $0.27, FiscalAI reports. The business had revenue of $354.40 million for the quarter, compared to analysts’ expectations of $353.25 million. Scotts Miracle-Gro had a net margin of 2.68% and a negative return on equity of 68.59%. The firm’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.89) earnings per share. Scotts Miracle-Gro updated its FY 2026 guidance to 4.150-4.35 EPS.

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

• Board approved a multi-year $500 million share repurchase program beginning in late 2026 with a long-term aim to reduce shares outstanding to ~40 million, executed in a measured way tied to free cash flow and leverage targets.
• Management set an ambitious longer-term goal to add $1 billion in incremental revenue and reach $1 billion in EBITDA by ~2030, driven by ~5% annual growth from innovation, pricing, volume and modest tuck‑in M&A.
• Scotts is exiting the Hawthorne cannabis business via a share‑exchange sale to Vireo, which management says will sharpen focus on core lawn & garden, remove cannabis volatility from the stock, and contribute roughly a 40 bps boost to gross margin.
• As part of the Hawthorne transaction the company took a $105 million pre‑tax impairment charge and will report Hawthorne as discontinued operations, requiring recasts of prior periods and creating a near‑term earnings hit.
• Q1 (ex‑Hawthorne) showed improving fundamentals—net sales of $354.4M, adjusted gross margin up ~90 bps, stronger e‑commerce and indoor gardening POS, and management reaffirmed fiscal 2026 guidance (adj. gross margin ≥32%, EPS $4.15–$4.35, FCF ≈ $275M).

Scotts Miracle-Gro Stock Up 4.0%

Shares of SMG stock opened at $65.34 on Friday. The firm has a market cap of $3.79 billion, a price-to-earnings ratio of 44.45 and a beta of 1.95. Scotts Miracle-Gro has a 12 month low of $45.61 and a 12 month high of $72.23. The stock has a 50-day moving average price of $58.90 and a 200 day moving average price of $59.42.

Scotts Miracle-Gro Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Friday, February 20th will be issued a $0.66 dividend. The ex-dividend date is Friday, February 20th. This represents a $2.64 annualized dividend and a yield of 4.0%. Scotts Miracle-Gro’s dividend payout ratio (DPR) is currently 109.09%.

Analysts Set New Price Targets

Several brokerages recently commented on SMG. Wells Fargo & Company boosted their price target on Scotts Miracle-Gro from $67.00 to $70.00 and gave the company an “overweight” rating in a research note on Thursday. Jefferies Financial Group increased their target price on shares of Scotts Miracle-Gro from $71.00 to $74.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Weiss Ratings restated a “hold (c-)” rating on shares of Scotts Miracle-Gro in a research report on Wednesday, January 21st. Wall Street Zen cut shares of Scotts Miracle-Gro from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Finally, Stifel Nicolaus set a $70.00 target price on Scotts Miracle-Gro and gave the stock a “buy” rating in a report on Thursday, November 6th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Scotts Miracle-Gro currently has an average rating of “Moderate Buy” and an average price target of $71.00.

Hedge Funds Weigh In On Scotts Miracle-Gro

Several large investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. grew its position 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 buying an additional 636 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in Scotts Miracle-Gro by 5.1% during the third quarter. Mercer Global Advisors Inc. ADV now owns 6,796 shares of the basic materials company’s stock valued at $387,000 after purchasing an additional 330 shares during the period. Virtu Financial LLC bought a new stake in Scotts Miracle-Gro in the third quarter valued at approximately $334,000. Shay Capital LLC raised its holdings in Scotts Miracle-Gro by 50.0% in the third quarter. Shay Capital LLC now owns 6,000 shares of the basic materials company’s stock worth $342,000 after purchasing an additional 2,000 shares during the period. Finally, Bank of Nova Scotia boosted its position in shares of Scotts Miracle-Gro by 10.0% during the second quarter. Bank of Nova Scotia now owns 5,630 shares of the basic materials company’s stock worth $371,000 after purchasing an additional 510 shares in the last quarter. 74.07% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Scotts Miracle-Gro

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

• Positive Sentiment: Announced $500M share‑repurchase and refocused portfolio with Hawthorne divestiture; management set aggressive 2030 targets of $1B incremental sales and $1B incremental EBITDA, signaling a clearer growth plan and capital return intent. Scotts growth targets, buyback and Hawthorne divestiture
• Positive Sentiment: Wells Fargo raised its price target to $70 and moved to an “overweight” rating — a bullish analyst call that provides support for higher valuation expectations. Wells Fargo raises SMG price target
• Positive Sentiment: Q1 results beat estimates: adjusted EPS loss was smaller than expected and revenue topped forecasts; management reaffirmed its FY‑2026 outlook — the beat + guidance confirmation reduces near‑term uncertainty. Q1 earnings beat and revenue beat
• Neutral Sentiment: UBS nudged its price target to $66 but kept a Neutral rating, reflecting that consumer staples headwinds still temper conviction despite company actions. UBS revises SMG outlook
• Neutral Sentiment: Expanded equity incentive programs won shareholder approval — supports retention/execution of turnaround but may imply modest dilution over time. Equity incentives expansion
• Negative Sentiment: Some mixed fundamentals: revenue was down ~3.3% year‑over‑year and the company still reports a low net margin and negative ROE metrics; FY guidance range (EPS 4.15–4.35) sits close to consensus but leaves limited upside for estimates to move materially higher. Earnings report and guidance

About Scotts Miracle-Gro

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.