Scotts Miracle-Gro Q4 revenue misses

Scotts Miracle-Gro

05/11/2025 12:19

Overview

Scotts Miracle-Gro Q4 revenue missed analyst expectations

Adjusted EBITDA for Q4 beats estimates

Outlook

Scotts Miracle-Gro expects U.S. Consumer net sales low single-digit growth in fiscal 2026

Company projects non-GAAP adjusted EPS of $4.15 to $4.35 for fiscal 2026

Scotts Miracle-Gro anticipates free cash flow of $275 mln, reducing leverage ratio to high 3's

Result Drivers

GROSS MARGIN IMPROVEMENT - Co achieved significant gross margin improvement, increasing by 670 basis points over prior year

COST SAVINGS - Strategic implementation of AI and robotic automation contributed to cost savings, allowing reinvestment in brands and channel expansion

U.S. CONSUMER SALES - U.S. Consumer net sales of $2.99 bln were in line with guidance, showing resilience in the consumer segment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$387.40 mln
$397.30 mln (9 Analysts)
Q4 Adjusted EPS
Beat
-$1.96
-$1.99 (8 Analysts)
Q4 EPS
-$2.63
Q4 Net Income
-$151.80 mln
Q4 Adjusted EBITDA
Beat
-$81.60 mln
-$86 mln (7 Analysts)
Q4 Gross Margin
23.50%
Q4 Basic EPS
-$2.63
Q4 Operating Income
-$150.10 mln
Q4 Pretax Profit
-$190.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

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

Wall Street's median 12-month price target for Scotts Miracle-Gro Co is $70.50, about 22.8% above its November 4 closing price of $54.46

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX179L8N

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.)