Scotts Miracle-Gro Q3 sales miss

Scotts Miracle-Gro

30/07/2025 12:26

Overview

Scotts Miracle-Gro fiscal Q3 sales fall 1%, missing analyst expectations, per LSEG data

Adjusted EPS for fiscal Q3 beats consensus, reflecting improved operational efficiency

Company reaffirms full-year non-GAAP fiscal 2025 guidance, indicating confidence in strategy

Outlook

Scotts Miracle-Gro reaffirms full-year non-GAAP fiscal 2025 guidance

Company expects U.S. Consumer net sales to grow low single-digit, excluding non-repeat sales

Scotts Miracle-Gro anticipates non-GAAP adjusted gross margin of ~30% for fiscal 2025

Company projects non-GAAP adjusted EBITDA of $570 mln to $590 mln for fiscal 2025

Scotts Miracle-Gro expects non-GAAP adjusted EPS of at least $3.50 for fiscal 2025

Company forecasts free cash flow of approximately $250 mln for fiscal 2025

Result Drivers

PRODUCT MIX - Improved mix driven by non-recurrence of lower-margin sales and increased sales of higher-margin branded products

LEVERAGE IMPROVEMENT - Leverage improved by over 1.3x compared to last year, reflecting better financial health

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.19 bln
$1.23 bln (8 Analysts)
Q3 Adjusted EPS
Beat
$2.59
$2.27 (8 Analysts)
Q3 EPS
$2.54
Q3 Net Income
$149.10 mln
Q3 Adjusted EBITDA
Beat
$256.10 mln
$251 mln (7 Analysts)
Q3 Gross Margin
378.0%
Q3 Basic EPS
$2.58
Q3 Operating Income
$215 mln
Q3 Pretax Profit
$207.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the agricultural chemicals peer group is "hold."

Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $75.00, about 9.5% above its July 29 closing price of $67.86

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNXbtSgZH

(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.)