Scotts Miracle-Gro misses Q1 revenue estimates, to sell Hawthorne unit, sets buyback

Reuters
Jan 28
<a href="https://laohu8.com/S/SMG">Scotts Miracle-Gro</a> misses Q1 revenue estimates, to sell Hawthorne unit, sets buyback

Overview

  • Lawn and garden products firm's fiscal Q1 revenue missed analyst expectations

  • Adjusted EBITDA for fiscal Q1 beat analyst expectations

  • Company announced divestiture of Hawthorne and $500 mln share repurchase program

Outlook

  • Scotts Miracle-Gro reaffirms fiscal 2026 guidance despite Hawthorne divestiture

  • Company expects fiscal 2026 U.S. Consumer net sales low single-digit growth

  • Scotts Miracle-Gro plans share repurchase program to start in late 2026

Result Drivers

  • MARGIN IMPROVEMENT - Co reported gross margin rate improvement by 90 basis points over prior year

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Miss

$354.40 mln

$358.43 mln (7 Analysts)

Q1 EPS

-$2.16

Q1 Net Income

-$125 mln

Q1 Adjusted EBITDA

Beat

$3 mln

-$11.12 mln (6 Analysts)

Q1 Gross Margin

88.70%

Q1 Basic EPS

-$2.16

Q1 Operating Income

-$21.80 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $70.00, about 10.7% above its January 27 closing price of $63.23

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX7SpRm2

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(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.)

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