Scotts Miracle-Gro (NYSE:SMG) Posts Earnings Results, Beats Expectations By $0.05 EPS

Scotts Miracle-Gro (NYSE:SMG) posted its quarterly earnings results on Wednesday. The basic materials company reported ($2.16) EPS for the quarter, topping the consensus estimate of ($2.21) by $0.05, FiscalAI reports. Scotts Miracle-Gro had a net margin of 2.19% and a negative return on equity of 81.90%. The business had revenue of $302.90 million during the quarter, compared to analysts’ expectations of $306.11 million. During the same period last year, the company posted ($2.63) earnings per share. The firm’s quarterly revenue was down 10.9% compared to the same quarter last year.

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

• Fiscal 2026 sales rose 1% to $3.29 billion, while adjusted EPS increased 18% to $4.48 and free cash flow reached $278 million. Gross margin expanded to 32.4% as branded-product mix and $35 million in supply-chain savings helped offset cost pressures.
• E-commerce branded POS grew 24%, with gains across lawns, gardens and controls, and Miracle-Gro Organic sales grew nearly 18%. The company said its shift toward higher-margin branded products is offsetting planned declines in mulch and commodity products.
• For fiscal 2027, management expects sales growth of 2%-4%, adjusted EPS of $4.70-$4.90, continued adjusted gross-margin expansion and about $275 million in free cash flow. The outlook includes at least $35 million in additional supply-chain savings and a 1%-2% sales contribution from the Black Kow acquisition.
• Management expects roughly $100 million in commodity headwinds and cited higher starting retail inventories as a sales headwind. It expects gross-margin improvement nearer the lower end of its 50-100 basis-point midterm range, with sales growth weighted to the second half.
• The company ended fiscal 2026 at 3.89x net debt to adjusted EBITDA and is targeting leverage of 3x-3.5x by fiscal 2029. It plans to prioritize debt reduction and business investment; further share repurchases are described as opportunistic rather than planned.

Scotts Miracle-Gro Trading Up 9.1%

NYSE SMG traded up $5.63 during trading on Wednesday, reaching $67.43. The company’s stock had a trading volume of 1,897,903 shares, compared to its average volume of 976,365. The stock has a market capitalization of $3.92 billion, a PE ratio of 58.79 and a beta of 1.87. Scotts Miracle-Gro has a 1-year low of $47.90 and a 1-year high of $75.34. The business has a 50-day moving average price of $55.41 and a 200-day moving average price of $61.91.

Scotts Miracle-Gro Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 20th will be given a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Friday, November 20th. Scotts Miracle-Gro’s dividend payout ratio (DPR) is presently 229.57%.

Analyst Ratings Changes

Several research firms have weighed in on SMG. Wall Street Zen lowered shares of Scotts Miracle-Gro from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. UBS Group raised shares of Scotts Miracle-Gro from a “neutral” rating to a “buy” rating and decreased their target price for the company from $78.00 to $70.00 in a research note on Thursday, October 15th. Wells Fargo & Company boosted their price target on shares of Scotts Miracle-Gro from $60.00 to $71.00 and gave the company an “overweight” rating in a report on Monday. Stifel Nicolaus cut their price objective on Scotts Miracle-Gro from $76.00 to $75.00 and set a “buy” rating for the company in a report on Tuesday, September 29th. Finally, Citigroup reiterated an “overweight” rating on shares of Scotts Miracle-Gro in a report on Monday. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $72.40.

Scotts Miracle-Gro News Roundup

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

• Positive Sentiment: SMG reported a fourth-quarter loss of $2.16 per share, narrower than the $2.21 loss analysts expected. For fiscal 2026, the company said adjusted EPS exceeded its guidance, gross margins expanded and it significantly strengthened its balance sheet. Fiscal 2026 results and outlook
• Positive Sentiment: Management’s fiscal 2027 guidance calls for continued top-line and bottom-line growth, supporting optimism that the company can build on its margin and balance-sheet progress. Fiscal Q4 results and fiscal 2027 guidance
• Positive Sentiment: The board declared a quarterly dividend of $0.66 per share, payable December 4 to shareholders of record November 20. Quarterly dividend announcement
• Negative Sentiment: Fourth-quarter revenue was $302.9 million, below the $306.1 million consensus and down 10.9% year over year, tempering the earnings beat. Fourth-quarter earnings results

Insider Activity at Scotts Miracle-Gro

In other news, Director Mark D. Kingdon sold 831 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $61.65, for a total transaction of $51,231.15. Following the transaction, the director owned 10,827 shares in the company, valued at approximately $667,484.55. This trade represents a 7.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 24.40% of the stock is currently owned by company insiders.

About Scotts Miracle-Gro

Scotts Miracle-Gro Company is a provider of consumer lawn and garden products headquartered in Marysville, Ohio. The company develops and markets products designed to help consumers grow and maintain lawns, gardens, landscapes and indoor plants.

Its portfolio includes lawn fertilizers, grass seed, plant food, gardening products, pest-control solutions, soils and related growing supplies. Key consumer brands include Scotts, Miracle-Gro, Ortho and Tomcat. The company also has a history of serving the controlled-environment agriculture and hydroponics markets through specialized growing products and supplies.

Scotts Miracle-Gro was founded in 1868 and has built a broad distribution network serving retail customers, garden centers and other outlets.