Scotts Miracle-Gro (NYSE:SMG) Issues Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Scotts Miracle-Gro (NYSE:SMG) posted its earnings results on Wednesday. The basic materials company reported ($0.77) EPS for the quarter, topping the consensus estimate of ($1.04) by $0.27, FiscalAI reports. The firm had revenue of $354.40 million during the quarter, compared to analysts’ expectations of $353.25 million. Scotts Miracle-Gro had a net margin of 4.26% and a negative return on equity of 67.74%. The company’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same period last year, the company posted ($0.89) EPS. Scotts Miracle-Gro updated its FY 2026 guidance to 4.150-4.35 EPS.

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

• Board approved a multi-year $500 million share repurchase program beginning in late 2026 with a long-term aim to reduce shares outstanding to ~40 million, executed in a measured way tied to free cash flow and leverage targets.
• Management set an ambitious longer-term goal to add $1 billion in incremental revenue and reach $1 billion in EBITDA by ~2030, driven by ~5% annual growth from innovation, pricing, volume and modest tuck?in M&A.
• Scotts is exiting the Hawthorne cannabis business via a share?exchange sale to Vireo, which management says will sharpen focus on core lawn & garden, remove cannabis volatility from the stock, and contribute roughly a 40 bps boost to gross margin.
• As part of the Hawthorne transaction the company took a $105 million pre?tax impairment charge and will report Hawthorne as discontinued operations, requiring recasts of prior periods and creating a near?term earnings hit.
• Q1 (ex?Hawthorne) showed improving fundamentals—net sales of $354.4M, adjusted gross margin up ~90 bps, stronger e?commerce and indoor gardening POS, and management reaffirmed fiscal 2026 guidance (adj. gross margin ?32%, EPS $4.15–$4.35, FCF ? $275M).

Scotts Miracle-Gro Stock Performance

SMG opened at $62.77 on Thursday. The stock has a market capitalization of $3.64 billion, a P/E ratio of 25.94 and a beta of 1.95. The company’s 50-day simple moving average is $58.64 and its two-hundred day simple moving average is $59.38. Scotts Miracle-Gro has a 52-week low of $45.61 and a 52-week high of $79.11.

Scotts Miracle-Gro Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 20th will be given a $0.66 dividend. The ex-dividend date of this dividend is Friday, February 20th. This represents a $2.64 dividend on an annualized basis and a yield of 4.2%. Scotts Miracle-Gro’s payout ratio is 109.09%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. CIBC Private Wealth Group LLC boosted its holdings in Scotts Miracle-Gro by 104.2% in the third quarter. CIBC Private Wealth Group LLC now owns 1,448 shares of the basic materials company’s stock worth $82,000 after purchasing an additional 739 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in shares of Scotts Miracle-Gro during the 3rd quarter valued at $32,000. Advisory Services Network LLC purchased a new position in shares of Scotts Miracle-Gro in the 3rd quarter worth $121,000. Jacobs Levy Equity Management Inc. boosted its stake in shares of Scotts Miracle-Gro by 26.3% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 898,519 shares of the basic materials company’s stock worth $51,171,000 after buying an additional 187,130 shares during the last quarter. Finally, PDT Partners LLC grew its holdings in shares of Scotts Miracle-Gro by 45.6% in the third quarter. PDT Partners LLC now owns 99,835 shares of the basic materials company’s stock worth $5,686,000 after acquiring an additional 31,260 shares during the period. 74.07% of the stock is owned by hedge funds and other institutional investors.

Key Scotts Miracle-Gro News

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

• Positive Sentiment: Q1 results beat on the bottom line and roughly matched revenue expectations: EPS of ($0.77) beat consensus and revenue of $354.4M was slightly above estimates — evidence of operating resilience. MarketBeat Q1 Results
• Positive Sentiment: Management unveiled a plan to divest Hawthorne (its cannabis?supply unit), reducing exposure to a volatile segment — viewed as risk?reducing and refocusing the company on core lawn & garden. WSJ: Scotts to Sell Hawthorne
• Positive Sentiment: Scotts announced a multi?year share repurchase program to begin in late 2026 and declared a quarterly dividend ($0.66/share), both shareholder?friendly moves that support valuation. GlobeNewswire Q1 Release
• Positive Sentiment: At least one sell?side analyst (William Blair) has reiterated a Buy and highlighted improved focus and valuation, providing third?party support for the name. TipRanks: Buy Rating
• Neutral Sentiment: Earnings call transcript and slide deck are available for investors parsing segment details and margin drivers; they provide granularity but no immediate market?moving surprise beyond guidance. Seeking Alpha Transcript
• Negative Sentiment: FY?2026 EPS guidance was set at $4.150–4.35, slightly below the Street consensus (~$4.28), which pressured the stock because investors focus on forward earnings growth. GlobeNewswire Guidance
• Negative Sentiment: Revenue was down ~3.3% year?over?year, and longer?term profitability/ROE metrics remain under pressure, giving some investors pause about near?term growth momentum. Zacks Q1 Coverage

Analyst Ratings Changes

A number of research firms have issued reports on SMG. UBS Group increased their price objective on Scotts Miracle-Gro from $61.00 to $66.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Stifel Nicolaus set a $70.00 price objective on Scotts Miracle-Gro and gave the company a “buy” rating in a research note on Thursday, November 6th. Wall Street Zen cut Scotts Miracle-Gro from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Jefferies Financial Group raised their price target on Scotts Miracle-Gro from $71.00 to $74.00 and gave the company a “buy” rating in a report on Wednesday, November 5th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Scotts Miracle-Gro in a research note on Wednesday, January 21st. Five research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Scotts Miracle-Gro presently has an average rating of “Moderate Buy” and an average price target of $70.33.

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.