Scotts Miracle-Gro (NYSE:SMG – Get Free Report) released 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 3.16% and a negative return on equity of 77.42%. The business had revenue of $302.90 million during the quarter, compared to analyst estimates of $306.11 million. During the same quarter in the prior year, the firm earned ($2.63) earnings per share. The company’s quarterly revenue was down 10.9% on a year-over-year basis.
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 Stock Performance
Shares of SMG stock traded down $1.81 during midday trading on Friday, reaching $64.57. 469,242 shares of the company were exchanged, compared to its average volume of 982,664. The company’s 50 day moving average price is $55.60 and its two-hundred day moving average price is $61.94. The company has a market cap of $3.76 billion, a P/E ratio of 38.44 and a beta of 1.87. Scotts Miracle-Gro has a 12 month low of $47.90 and a 12 month high of $75.34.
Scotts Miracle-Gro Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 20th will be given a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Friday, November 20th. Scotts Miracle-Gro’s payout ratio is 157.14%.
Wall Street Analyst Weigh In
Several analysts recently weighed in on the stock. Weiss Ratings downgraded shares of Scotts Miracle-Gro from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, October 6th. UBS Group upped their target price on shares of Scotts Miracle-Gro from $70.00 to $77.00 and gave the stock a “buy” rating in a research report on Thursday. 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. Citigroup reaffirmed an “overweight” rating on shares of Scotts Miracle-Gro in a report on Monday. Finally, JPMorgan Chase & Co. cut their price target on Scotts Miracle-Gro from $70.00 to $67.00 and set a “neutral” rating on the stock in a report on Thursday. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $74.80.
Check Out Our Latest Report on Scotts Miracle-Gro
Insider Activity
In related news, Director Mark D. Kingdon sold 831 shares of the firm’s stock in a transaction that occurred 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 $667,484.55. This trade represents a 7.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 24.40% of the stock is 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.
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