Scotts Miracle-Gro (NYSE:SMG) Issues Quarterly Earnings Results, Beats Expectations By $0.34 EPS

Scotts Miracle-Gro (NYSE:SMG) released its quarterly earnings results on Wednesday. The basic materials company reported $2.82 earnings per share (EPS) for the quarter, beating 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 3.27% and a negative return on equity of 79.61%. The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter last year, the company earned $2.59 EPS.

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 Stock Performance

NYSE:SMG traded down $3.17 during trading hours on Wednesday, hitting $69.93. The company’s stock had a trading volume of 616,072 shares, compared to its average volume of 937,818. The company has a market capitalization of $4.07 billion, a PE ratio of 39.04 and a beta of 1.81. Scotts Miracle-Gro has a 52-week low of $52.00 and a 52-week high of $75.34. The business’s 50-day moving average is $64.28 and its two-hundred day moving average is $64.15.

Scotts Miracle-Gro Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be issued a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Friday, August 21st. Scotts Miracle-Gro’s dividend payout ratio is currently 147.49%.

Analysts Set New Price Targets

A number of analysts have issued reports on SMG shares. Jefferies Financial Group reaffirmed a “buy” rating and issued a $79.00 target price on shares of Scotts Miracle-Gro in a research note on Wednesday, April 29th. UBS Group boosted their price target on shares of Scotts Miracle-Gro from $63.00 to $70.00 and gave the stock a “neutral” rating in a research note on Thursday, July 16th. Wells Fargo & Company increased their price target on Scotts Miracle-Gro from $72.00 to $74.00 and gave the company an “overweight” rating in a research report on Wednesday, July 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Scotts Miracle-Gro in a report on Monday, May 4th. Finally, Wall Street Zen upgraded shares of Scotts Miracle-Gro from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $73.00.

Institutional Trading of Scotts Miracle-Gro

Several large investors have recently bought and sold shares of SMG. Empowered Funds LLC boosted its position in shares of Scotts Miracle-Gro by 26.3% in the 1st quarter. Empowered Funds LLC now owns 7,524 shares of the basic materials company’s stock worth $413,000 after buying an additional 1,569 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Scotts Miracle-Gro by 18.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 149,882 shares of the basic materials company’s stock valued at $8,227,000 after buying an additional 23,446 shares during the period. Prudential Financial Inc. grew its stake in Scotts Miracle-Gro by 34.6% in the 2nd quarter. Prudential Financial Inc. now owns 4,745 shares of the basic materials company’s stock worth $342,000 after acquiring an additional 1,219 shares during the period. Invesco Ltd. lifted its stake in shares of Scotts Miracle-Gro by 71.2% during the 2nd quarter. Invesco Ltd. now owns 247,749 shares of the basic materials company’s stock worth $16,342,000 after purchasing an additional 102,997 shares during the period. Finally, Baird Financial Group Inc. acquired a new position in Scotts Miracle-Gro during the second quarter worth approximately $309,000. Institutional investors and hedge funds own 74.07% of the company’s stock.

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.