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

Scotts Miracle-Gro (NYSE:SMG) released its quarterly earnings data on Wednesday. The basic materials company reported $4.53 earnings per share for the quarter, beating the consensus estimate of $3.97 by $0.56, Zacks reports. Scotts Miracle-Gro had a negative return on equity of 79.61% and a net margin of 3.27%.The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the previous year, the company posted $3.98 earnings per share. The firm’s quarterly revenue was up 2.7% on a year-over-year basis.

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

SMG stock traded down $0.87 during trading on Friday, reaching $61.84. The company had a trading volume of 706,457 shares, compared to its average volume of 926,038. The company has a market cap of $3.59 billion, a price-to-earnings ratio of 34.54 and a beta of 1.94. Scotts Miracle-Gro has a twelve month low of $52.00 and a twelve month high of $72.35. The firm has a 50-day simple moving average of $64.64 and a 200-day simple moving average of $60.97.

Scotts Miracle-Gro Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be paid a $0.66 dividend. The ex-dividend date is Friday, May 22nd. This represents a $2.64 dividend on an annualized basis and a yield of 4.3%. Scotts Miracle-Gro’s dividend payout ratio (DPR) is 179.59%.

Analyst Upgrades and Downgrades

A number of research firms have commented on SMG. Weiss Ratings reissued a “hold (c-)” rating on shares of Scotts Miracle-Gro in a research report on Wednesday, January 21st. Jefferies Financial Group reiterated a “buy” rating and set a $79.00 price objective on shares of Scotts Miracle-Gro in a research note on Wednesday. UBS Group set a $67.00 target price on shares of Scotts Miracle-Gro in a research report on Thursday, January 29th. Wells Fargo & Company lowered 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, Stifel Nicolaus upped their price target on Scotts Miracle-Gro from $70.00 to $79.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.00.

Insiders Place Their Bets

In other news, Director Hagedorn Partnership, L.P. sold 50,000 shares of Scotts Miracle-Gro stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $66.40, for a total transaction of $3,320,000.00. Following the completion of the sale, the director directly owned 13,167,641 shares in the company, valued at approximately $874,331,362.40. The trade was a 0.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Mark J. Scheiwer acquired 693 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were bought at an average cost of $71.44 per share, for a total transaction of $49,507.92. Following the completion of the acquisition, the executive vice president directly owned 15,370 shares of the company’s stock, valued at approximately $1,098,032.80. The trade was a 4.72% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 24.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SMG. Invesco Ltd. increased its holdings in Scotts Miracle-Gro by 25.6% in the 4th quarter. Invesco Ltd. now owns 254,087 shares of the basic materials company’s stock worth $14,826,000 after buying an additional 51,738 shares during the period. Corient Private Wealth LLC raised its stake in shares of Scotts Miracle-Gro by 50.5% during the 4th quarter. Corient Private Wealth LLC now owns 129,847 shares of the basic materials company’s stock worth $7,505,000 after buying an additional 43,571 shares during the period. Quadrature Capital Ltd purchased a new position in Scotts Miracle-Gro during the fourth quarter valued at $286,000. Man Group plc raised its position in shares of Scotts Miracle-Gro by 1.8% in the fourth quarter. Man Group plc now owns 44,389 shares of the basic materials company’s stock valued at $2,590,000 after buying an additional 806 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its stake in shares of Scotts Miracle-Gro by 39.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 613,693 shares of the basic materials company’s stock worth $35,809,000 after buying an additional 172,356 shares in the last quarter. 74.07% of the stock is currently owned by hedge funds and other institutional investors.

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.