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

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

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 Price Performance

Shares of SMG traded down $1.03 during trading hours on Thursday, hitting $69.30. The stock had a trading volume of 329,333 shares, compared to its average volume of 942,690. The firm has a market capitalization of $4.03 billion, a PE ratio of 38.58 and a beta of 1.81. Scotts Miracle-Gro has a 12 month low of $52.00 and a 12 month high of $75.34. The stock has a fifty day moving average price of $64.53 and a 200 day moving average price of $64.21.

Scotts Miracle-Gro Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be issued a $0.66 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $2.64 annualized dividend and a dividend yield of 3.8%. Scotts Miracle-Gro’s payout ratio is presently 147.49%.

Institutional Investors Weigh In On Scotts Miracle-Gro

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd purchased a new stake in Scotts Miracle-Gro during the third quarter valued at approximately $32,000. Aster Capital Management DIFC Ltd purchased a new position in shares of Scotts Miracle-Gro during the 4th quarter worth $53,000. Quarry LP grew its position in shares of Scotts Miracle-Gro by 314.4% during the 4th quarter. Quarry LP now owns 1,326 shares of the basic materials company’s stock valued at $77,000 after acquiring an additional 1,006 shares during the period. CIBC Private Wealth Group LLC increased its stake in shares of Scotts Miracle-Gro by 104.2% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,448 shares of the basic materials company’s stock worth $82,000 after purchasing an additional 739 shares in the last quarter. Finally, Advisory Services Network LLC bought a new position in Scotts Miracle-Gro in the 3rd quarter worth $121,000. Hedge funds and other institutional investors own 74.07% of the company’s stock.

Analysts Set New Price Targets

SMG has been the topic of several recent analyst reports. UBS Group increased their target price on Scotts Miracle-Gro from $63.00 to $70.00 and gave the company a “neutral” rating in a research note on Thursday, July 16th. Wells Fargo & Company boosted their price target on Scotts Miracle-Gro from $74.00 to $77.00 and gave the stock an “overweight” rating in a research note on Thursday. Wall Street Zen raised Scotts Miracle-Gro from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Jefferies Financial Group reaffirmed a “buy” rating and set a $79.00 price objective on shares of Scotts Miracle-Gro in a research report on Wednesday, April 29th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Scotts Miracle-Gro in a report on Monday, May 4th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $73.60.

Trending Headlines about Scotts Miracle-Gro

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

• Positive Sentiment: Raised EPS guidance: Scotts increased fiscal 2026 adjusted EPS guidance to $4.30–$4.45 from $4.15–$4.35, citing accelerated earnings growth. The company maintained its expectations for low-single-digit U.S. Consumer sales growth and approximately $275 million in free cash flow. ScottsMiracle-Gro Reports Third Quarter Results
• Positive Sentiment: Profitability and leverage improvements: Adjusted EPS beat consensus estimates, and the company’s net leverage ratio improved to 3.78x from the prior year, supporting its balance-sheet and capital-allocation plans.
• Positive Sentiment: Dividend maintained: The board approved a quarterly dividend of $0.66 per share, payable September 4 to shareholders of record August 21. The payout provides continued income support for investors. Quarterly Dividend Payment
• Neutral Sentiment: Investor Day ahead: On August 4, management will outline the “SMG 2.0” growth strategy, portfolio optimization, capital allocation, leverage reduction and longer-term sales and profitability targets. The event could become a near-term catalyst if targets are better than expected. Investor Day Details
• Negative Sentiment: Underlying results remain pressured: GAAP net income fell to $112.2 million from $149.1 million, GAAP EPS declined 34%, and gross margin contracted 90 basis points to 31.2%. The modest revenue growth and margin pressure may be limiting the market’s reaction to the adjusted EPS beat.

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.