Scotts Miracle-Gro (NYSE:SMG – Get Free Report) posted its quarterly earnings results on Wednesday. The basic materials company reported $2.82 EPS for the quarter, topping analysts’ consensus estimates 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 net margin of 2.19% and a negative return on equity of 81.90%. The business’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the business posted $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
Scotts Miracle-Gro stock traded down $0.98 during trading hours on Friday, reaching $67.33. The stock had a trading volume of 232,882 shares, compared to its average volume of 942,664. The company has a market cap of $3.92 billion, a price-to-earnings ratio of 58.58 and a beta of 1.81. The business’s 50 day moving average price is $64.71 and its 200-day moving average price is $64.26. Scotts Miracle-Gro has a 52 week low of $52.00 and a 52 week high of $75.34.
Scotts Miracle-Gro Dividend Announcement
Insider Buying and Selling at Scotts Miracle-Gro
In other news, Director Stephen L. Johnson sold 1,171 shares of Scotts Miracle-Gro stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $68.32, for a total value of $80,002.72. Following the transaction, the director owned 30,179 shares of the company’s stock, valued at $2,061,829.28. The trade was a 3.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 24.40% of the company’s stock.
Institutional Investors Weigh In On Scotts Miracle-Gro
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp grew its holdings in Scotts Miracle-Gro by 1.1% in the second quarter. State Street Corp now owns 1,522,093 shares of the basic materials company’s stock worth $100,397,000 after purchasing an additional 16,298 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Scotts Miracle-Gro by 29.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,165,367 shares of the basic materials company’s stock valued at $66,368,000 after purchasing an additional 265,677 shares during the last quarter. Captrust Financial Advisors boosted its position in shares of Scotts Miracle-Gro by 0.3% in the 4th quarter. Captrust Financial Advisors now owns 1,157,714 shares of the basic materials company’s stock worth $67,553,000 after purchasing an additional 2,899 shares in the last quarter. Jacobs Levy Equity Management Inc. boosted its position in shares of Scotts Miracle-Gro by 26.3% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 898,519 shares of the basic materials company’s stock worth $51,171,000 after purchasing an additional 187,130 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Scotts Miracle-Gro by 15.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 823,662 shares of the basic materials company’s stock worth $48,059,000 after buying an additional 108,428 shares during the last quarter. Hedge funds and other institutional investors own 74.07% of the company’s stock.
Analysts Set New Price Targets
A number of equities analysts have recently commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating and set a $79.00 target price on shares of Scotts Miracle-Gro in a research report on Wednesday, April 29th. Wall Street Zen upgraded Scotts Miracle-Gro from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Weiss Ratings reissued a “hold (c)” rating on shares of Scotts Miracle-Gro in a research note on Monday, May 4th. UBS Group raised their price objective on Scotts Miracle-Gro from $70.00 to $78.00 and gave the stock a “neutral” rating in a report on Thursday. Finally, Stifel Nicolaus decreased their target price on Scotts Miracle-Gro from $76.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, June 8th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Scotts Miracle-Gro currently has an average rating of “Hold” and a consensus target price of $75.20.
Read Our Latest Stock Analysis on Scotts Miracle-Gro
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.
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