William Blair Has Positive Outlook for SMG FY2025 Earnings

Key Points

• William Blair raised its FY2025 earnings per share estimate for Scotts Miracle-Gro to $3.55, an increase from the previous estimate of $3.42.
• Scotts Miracle-Gro reported quarterly earnings of $2.59 per share, exceeding analysts' expectations of $2.19, but had a slight revenue drop of 1.2% year-over-year.
• The company announced a quarterly dividend of $0.66 per share, reflecting a 4.2% yield, with a significant payout ratio of 528.00%.

The Scotts Miracle-Gro Company (NYSE:SMG - Free Report) - Research analysts at William Blair upped their FY2025 earnings per share estimates for shares of Scotts Miracle-Gro in a research note issued on Wednesday, July 30th. William Blair analyst J. Andersen now forecasts that the basic materials company will earn $3.55 per share for the year, up from their previous estimate of $3.42. The consensus estimate for Scotts Miracle-Gro's current full-year earnings is $3.42 per share. William Blair also issued estimates for Scotts Miracle-Gro's FY2026 earnings at $4.08 EPS.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The basic materials company reported $2.59 earnings per share for the quarter, beating analysts' consensus estimates of $2.19 by $0.40. Scotts Miracle-Gro had a negative return on equity of 60.46% and a net margin of 1.54%. The business had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the prior year, the business earned $2.31 EPS. The firm's revenue for the quarter was down 1.2% on a year-over-year basis.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. reduced their target price on shares of Scotts Miracle-Gro from $80.00 to $65.00 and set an "overweight" rating for the company in a research report on Thursday, May 1st. Stifel Nicolaus cut shares of Scotts Miracle-Gro from a "buy" rating to a "hold" rating and lifted their price target for the company from $70.00 to $71.00 in a report on Monday, June 9th. Truist Financial set a $80.00 price objective on shares of Scotts Miracle-Gro and gave the stock a "buy" rating in a research note on Monday, July 14th. Wells Fargo & Company lifted their price target on Scotts Miracle-Gro from $72.00 to $75.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 9th. Finally, UBS Group set a $68.00 target price on Scotts Miracle-Gro and gave the stock a "neutral" rating in a report on Thursday. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $71.33.

Scotts Miracle-Gro Stock Performance

Shares of SMG opened at $62.66 on Friday. Scotts Miracle-Gro has a 52 week low of $45.61 and a 52 week high of $93.90. The firm has a market cap of $3.62 billion, a P/E ratio of 82.44 and a beta of 2.01. The firm's 50-day simple moving average is $64.81 and its 200 day simple moving average is $61.84.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Millennium Management LLC increased its holdings in shares of Scotts Miracle-Gro by 288.8% during the 1st quarter. Millennium Management LLC now owns 1,421,220 shares of the basic materials company's stock worth $78,011,000 after buying an additional 1,055,672 shares during the last quarter. Point72 Asset Management L.P. bought a new position in shares of Scotts Miracle-Gro during the fourth quarter valued at approximately $53,453,000. Raymond James Financial Inc. acquired a new stake in Scotts Miracle-Gro in the fourth quarter worth about $39,986,000. Alyeska Investment Group L.P. acquired a new stake in shares of Scotts Miracle-Gro during the fourth quarter worth $39,434,000. Finally, Cubist Systematic Strategies LLC boosted its stake in Scotts Miracle-Gro by 770.3% in the 1st quarter. Cubist Systematic Strategies LLC now owns 334,934 shares of the basic materials company's stock worth $18,385,000 after purchasing an additional 296,448 shares during the period. 74.07% of the stock is currently owned by institutional investors and hedge funds.

Scotts Miracle-Gro Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be paid a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a yield of 4.2%. The ex-dividend date is Friday, August 22nd. Scotts Miracle-Gro's dividend payout ratio (DPR) is currently 528.00%.

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions.

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