Scotts Miracle-Gro Q3 revenue matches estimates, adjusted EPS beats
SMG•Key reported figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Sales | Meet | $1.17 bln | $1.17 bln (7 Analysts) |
| Q3 Adjusted EPS | Beat | $2.82 | $2.49 (7 Analysts) |
| Q3 EPS | $1.90 | ||
| Q3 Net Income | $112.20 mln | ||
| Q3 Adjusted EBITDA | Miss | $246.30 mln | $250.55 mln (6 Analysts) |
| Q3 Basic EPS | $1.93 | ||
| Q3 Operating Income | $169.60 mln |
Outlook and margin drivers
The company now expects full-year adjusted diluted EPS from continuing operations of $4.30 to $4.45.
It reaffirmed U.S. Consumer net sales low single-digit growth for fiscal 2026, and expects free cash flow of $275 million with leverage ratio down to the high 3s.
Scotts Miracle-Gro said gross margin rates declined due to increased freight and commodity costs resulting from the Iran conflict. Margin expansion efforts included supply chain automation, expanded use of AI, and manufacturing investments. Improved adjusted net income was partly due to strong performance of the Bonnie Plants joint venture and a lower tax rate.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy", with 4 "strong buy" or , 3 , and no or recommendations.
