Scotts Miracle-Gro Q3 revenue matches estimates, adjusted EPS beats
Reuters2026/07/29 11:01
Overview
U.S. lawn and garden supplier's fiscal Q3 revenue was flat, matching analyst expectations
Adjusted EPS for fiscal Q3 rose 8% and beat analyst expectations
Company says higher freight and commodity costs weighed on margins, offset by supply chain automation
Outlook
Scotts Miracle-Gro now expects full-year adj diluted EPS from continuing operations of $4.30 to $4.45
Company reaffirms U.S. Consumer net sales low single-digit growth for fiscal 2026
Scotts Miracle-Gro expects free cash flow of $275 mln, leverage ratio down to high 3s
Result Drivers
HIGHER FREIGHT AND COMMODITY COSTS - Co said gross margin rates declined due to increased freight and commodity costs resulting from the Iran conflict
SUPPLY CHAIN AUTOMATION AND AI - Co said margin expansion efforts included supply chain automation, expanded use of AI, and manufacturing investments
BONNIE PLANTS JOINT VENTURE AND TAX RATE - Co said improved adjusted net income was partly due to strong performance of Bonnie Plants joint venture and a lower tax rate
Company press release: ID:nGNX8N8FYd
Key Details
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 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $75.00, about 2.6% above its July 28 closing price of $73.10
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
July 29 - SiteOne Q2 sales slightly miss estimates on soft demand
July 28 - Paint supplier PPG Industries misses quarterly profit on rising costs
July 28 - Sherwin-Williams raises profit forecast, expects higher prices to drive growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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