Zacks Research Issues Negative Forecast for SMG Earnings

Key Points

• Zacks Research lowered Scotts Miracle-Gro’s near-term EPS forecasts, projecting a Q4 2026 loss of $2.15 per share versus its prior estimate of $1.95. It also expects losses in Q1 2027, Q4 2027 and Q1 2028.
• Scotts Miracle-Gro’s latest quarterly results beat expectations, with EPS of $2.82 versus the $2.48 consensus estimate, while revenue rose 1.1% year over year to $1.17 billion.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and an average target price of $75.40. The company also announced a $0.66 quarterly dividend, representing a 4.4% yield, although its payout ratio is elevated at 229.57%.

The Scotts Miracle-Gro Company (NYSE:SMG - Free Report) - Research analysts at Zacks Research reduced their Q4 2026 EPS estimates for Scotts Miracle-Gro in a report issued on Monday, August 17th. Zacks Research analyst Team now anticipates that the basic materials company will earn ($2.15) per share for the quarter, down from their prior estimate of ($1.95). The consensus estimate for Scotts Miracle-Gro's current full-year earnings is $4.41 per share. Zacks Research also issued estimates for Scotts Miracle-Gro's Q1 2027 earnings at ($0.74) EPS, Q4 2027 earnings at ($1.63) EPS and Q1 2028 earnings at ($0.73) EPS.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.48 by $0.34. Scotts Miracle-Gro had a negative return on equity of 81.90% and a net margin of 2.19%.The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the prior year, the firm posted $2.59 earnings per share. The firm's revenue was up 1.1% compared to the same quarter last year.

A number of other equities analysts have also commented on the stock. UBS Group lifted their price target on shares of Scotts Miracle-Gro from $70.00 to $78.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Stifel Nicolaus raised their target price on Scotts Miracle-Gro from $75.00 to $76.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. Jefferies Financial Group reaffirmed a "buy" rating and set a $79.00 target price on shares of Scotts Miracle-Gro in a report on Wednesday, April 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Scotts Miracle-Gro in a research report on Friday, July 31st. Finally, Wall Street Zen cut Scotts Miracle-Gro from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $75.40.

Scotts Miracle-Gro Price Performance

SMG opened at $59.48 on Wednesday. Scotts Miracle-Gro has a fifty-two week low of $52.00 and a fifty-two week high of $75.34. The company's 50 day moving average price is $65.85 and its two-hundred day moving average price is $64.26. The firm has a market capitalization of $3.46 billion, a price-to-earnings ratio of 51.72 and a beta of 1.82.

Scotts Miracle-Gro Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date is Friday, August 21st. Scotts Miracle-Gro's payout ratio is presently 229.57%.

Insiders Place Their Bets

In other Scotts Miracle-Gro news, Director Stephen L. Johnson sold 1,171 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $68.32, for a total value of $80,002.72. Following the transaction, the director directly owned 30,179 shares of the company's stock, valued at approximately $2,061,829.28. The trade was a 3.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Hagedorn Partnership, L.P. sold 30,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $67.45, for a total value of $2,023,500.00. Following the transaction, the director owned 13,137,641 shares in the company, valued at $886,133,885.45. The trade was a 0.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 32,002 shares of company stock worth $2,154,734. 24.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Scotts Miracle-Gro

Several institutional investors have recently made changes to their positions in the stock. Cassaday & Co Wealth Management LLC bought a new stake in shares of Scotts Miracle-Gro during the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Scotts Miracle-Gro in the 3rd quarter worth about $32,000. Elevation Wealth Partners LLC raised its holdings in shares of Scotts Miracle-Gro by 394.1% in the 2nd quarter. Elevation Wealth Partners LLC now owns 751 shares of the basic materials company's stock worth $51,000 after acquiring an additional 599 shares during the last quarter. SBI Securities Co. Ltd. lifted its position in Scotts Miracle-Gro by 127.9% in the 4th quarter. SBI Securities Co. Ltd. now owns 889 shares of the basic materials company's stock valued at $52,000 after acquiring an additional 499 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new position in Scotts Miracle-Gro in the 4th quarter valued at about $53,000. Institutional investors and hedge funds own 74.07% of the company's stock.

Scotts Miracle-Gro News Roundup

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

• Positive Sentiment: Zacks Research raised its estimates for several profitable periods, including FY2026 EPS to $4.43 from $4.30, FY2027 EPS to $4.60 from $4.50, and FY2028 EPS to $4.95 from $4.73. Estimates for Q2 2027, Q2 2028 and Q3 2028 were also increased, suggesting analysts see potential for longer-term earnings improvement.
• Neutral Sentiment: Scotts and the Columbus Crew hosted an Ohio 4-H mowing clinic at ScottsMiracle-Gro Field. The community and brand-building event highlights Scotts’ turfgrass expertise but is unlikely to have a material near-term effect on earnings. Columbus Crew and Scotts Host Ohio 4-H Youth for First-ever Mowing Clinic at ScottsMiracle-Gro Field
• Negative Sentiment: Zacks Research trimmed multiple near-term forecasts: Q4 2026 EPS was lowered to a loss of $2.15 from $1.95, Q1 2027 to a loss of $0.74 from $0.73, Q4 2027 to a loss of $1.63 from $1.62, and Q1 2028 to a loss of $0.73 from $0.72. Although the reductions are small, they may weigh on sentiment because they point to somewhat weaker expectations during upcoming seasonal loss periods.

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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