Scotts Miracle-Gro (NYSE:SMG) Posts Earnings Results, Beats Estimates By $0.56 EPS

Key Points

• Scotts Miracle‑Gro reported Q (quarter) EPS of $4.53, beating estimates by $0.56, with revenue of $1.46B (up 2.7% YoY) and expanding gross margins to 41.8%.
• The company completed the Hawthorne divestiture, cut leverage to 3.71x and launched a multi‑year share repurchase program aimed at buying at least one‑third of outstanding shares while keeping leverage in the low 3s.
• Management rolled out "SMG 2.0" targeting an incremental $1 billion by 2030 and >$1B EBITDA with a priority on e‑commerce (YTD +22%, up to a $800M opportunity), but warned of fiscal‑2027 commodity and geopolitical risks that may require price increases and could pressure demand.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) released its earnings results on Wednesday. The basic materials company reported $4.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.97 by $0.56, Zacks reports. The firm had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.41 billion. Scotts Miracle-Gro had a negative return on equity of 68.59% and a net margin of 2.68%.The firm's revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the business posted $3.98 earnings per share.

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

• Company completed the Hawthorne divestiture and reduced leverage to 3.71x, enabling the first tranche of a multi-year share repurchase program aimed at buying at least one-third of outstanding shares while keeping leverage in the low 3s.
• Gross margins are expanding ahead of plan—quarter GAAP margin was 41.8% with year-to-date improvement of ~200–260 bps—driven by a shift to higher‑margin branded products and targeted supply‑chain savings (targeting ~1% annual savings, ~$35M).
• Management rolled out "SMG 2.0," a multi-year growth plan targeting an incremental $1 billion by 2030 and >$1B EBITDA, prioritizing e‑commerce (e‑com POS +22% YTD and management cites up to $800M of e‑com opportunity), SKU rationalization, new brand leadership hires, and AI/automation investments.
• Fiscal 2027 faces material uncertainty from commodity and geopolitical risks (Iran war); while most FY26 costs are locked, management says it may need to take price increases in FY27 to preserve margin targets, which could pressure demand or retail negotiations.
• The company reaffirmed fiscal 2026 guidance after early‑season momentum (Q2 net sales +5%, YTD net sales +3%) and emphasized seasonal sell‑through remains the key driver as the business enters peak lawn & garden season.

Scotts Miracle-Gro Stock Performance

Shares of SMG opened at $62.30 on Thursday. The company's fifty day moving average is $64.79 and its 200 day moving average is $60.96. Scotts Miracle-Gro has a fifty-two week low of $45.61 and a fifty-two week high of $72.35. The stock has a market capitalization of $3.62 billion, a PE ratio of 42.38 and a beta of 1.94.

Scotts Miracle-Gro Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be issued a $0.66 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $2.64 dividend on an annualized basis and a dividend yield of 4.2%. Scotts Miracle-Gro's dividend payout ratio (DPR) is 179.59%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on SMG. Stifel Nicolaus increased their price objective on shares of Scotts Miracle-Gro from $70.00 to $79.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. UBS Group set a $67.00 target price on shares of Scotts Miracle-Gro in a report on Thursday, January 29th. JPMorgan Chase & Co. lowered shares of Scotts Miracle-Gro from an "overweight" rating to a "neutral" rating and dropped their target price for the stock from $70.00 to $67.00 in a research report on Thursday, March 26th. Wells Fargo & Company cut their target price on shares of Scotts Miracle-Gro from $75.00 to $72.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $79.00 price target on shares of Scotts Miracle-Gro in a report on Wednesday. Four research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Scotts Miracle-Gro presently has an average rating of "Moderate Buy" and a consensus target price of $74.00.

Insider Buying and Selling at Scotts Miracle-Gro

In related news, EVP Mark J. Scheiwer purchased 693 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The stock was bought at an average price of $71.44 per share, for a total transaction of $49,507.92. Following the completion of the transaction, the executive vice president owned 15,370 shares in the company, valued at approximately $1,098,032.80. The trade was a 4.72% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Hagedorn Partnership, L.P. sold 50,000 shares of Scotts Miracle-Gro stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $66.40, for a total value of $3,320,000.00. Following the completion of the transaction, the director owned 13,167,641 shares of the company's stock, valued at approximately $874,331,362.40. This represents a 0.38% decrease in their position. The disclosure for this sale is available in the SEC filing. 24.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Scotts Miracle-Gro

Institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of Scotts Miracle-Gro by 18.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,390 shares of the basic materials company's stock valued at $373,000 after purchasing an additional 981 shares during the last quarter. Bank of Nova Scotia lifted its position in Scotts Miracle-Gro by 10.0% in the second quarter. Bank of Nova Scotia now owns 5,630 shares of the basic materials company's stock worth $371,000 after buying an additional 510 shares during the last quarter. Johnson Investment Counsel Inc. bought a new stake in Scotts Miracle-Gro in the fourth quarter worth $365,000. United Capital Financial Advisors LLC purchased a new position in Scotts Miracle-Gro during the third quarter worth $353,000. Finally, Shay Capital LLC boosted its stake in Scotts Miracle-Gro by 50.0% during the third quarter. Shay Capital LLC now owns 6,000 shares of the basic materials company's stock worth $342,000 after buying an additional 2,000 shares during the period. 74.07% of the stock is owned by institutional investors.

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.