Scotts Miracle-Gro Forecasts Q4 EPS of -$1.02 on $357.6M Revenue
Scotts Miracle-Gro forecasts Q4 EPS of -$1.02 on $357.6 million revenue, despite maintaining a P/E of 24.96 and P/S of 1.07 reflecting investor optimism. The company reports an EV/S of 1.67, EV/OCF of 15.39 and current ratio of 1.27, and will pay a $0.66 quarterly dividend on March 6, 2026.
1. Earnings Forecast and Investor Sentiment
Scotts Miracle-Gro is set to report quarterly results on January 28, 2026, with Wall Street analysts projecting earnings per share of -1.02 and revenues of 357.6 million. Despite the negative EPS estimate, the company’s price-to-earnings ratio stands at 24.96, indicating that investors are willing to pay nearly $25 for each dollar of reported earnings. This premium P/E reflects market confidence in the business’s ability to return to profitability and capitalize on its core lawn and garden markets.
2. Valuation and Cash Flow Metrics
On a price-to-sales basis, the company trades at 1.07, suggesting its shares are valued at just over one times annual revenue—an indicator of potential undervaluation in comparison to peers. Enterprise value to sales is 1.67, while enterprise value to operating cash flow is 15.39, underscoring efficient cash generation relative to overall valuation. The earnings yield of 4.01% provides a yield perspective that, although modest in light of the EPS forecast, remains competitive against fixed-income alternatives.
3. Balance Sheet Strength
Scotts Miracle-Gro carries a debt-to-equity ratio of -5.89, pointing to a higher absolute debt load relative to equity that could raise leverage concerns. However, the company maintains a current ratio of 1.27, demonstrating sufficient short-term liquidity to cover its current liabilities with current assets. This liquidity buffer helps mitigate refinancing risks and supports operational stability through seasonal fluctuations in consumer demand.
4. Shareholder Returns
The board has declared a quarterly cash dividend of 0.66 per share, payable on March 6, 2026, to stockholders of record as of February 20, 2026. This distribution underscores management’s commitment to returning capital even in periods of earnings pressure. Investors seeking income will find the ongoing payout policy supportive, while the blend of yield and confidence in long-term growth may appeal to a broad range of portfolio strategies.