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

Scotts Miracle-Gro

28/01/2026 12:09

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@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.)