Scotts Miracle-Gro's Q3 Earnings Top, Revenues Lag Estimates

The Scotts Miracle-Gro Company SMG reported a third-quarter fiscal 2025 (ended June 28, 2025) profit of $149.1 million or $2.54 per share compared with a profit of $132.1 million or $2.28 per share in the year-ago quarter.

Barring one-time items, the adjusted earnings were $2.59 per share, up from $2.31 a year ago. The figure surpassed the Zacks Consensus Estimate of $2.19.

Net sales decreased around 1.2% year over year to $1,188 million and missed the consensus mark of $1,230.9 million.

SMG’s Segment Details

In the fiscal third quarter, net sales in the U.S. Consumer division were up 1% year over year to $1,030.2 million. It missed our estimate of $1,071.4 million. The segment delivered a profit of $235.5 million, up 12% year over year.

Net sales in the Hawthorne segment tumbled 54% year over year to $31.2 million in the reported quarter. The figure lagged our estimate of $56.5 million. 

Net sales in the other segment increased 8% year over year to $126.6 million. The figure topped our estimate of $100.2 million. The segment reported a profit of $16.8 million, up 44% year over year.

SMG’s Balance Sheet

At the end of the quarter, the company had cash and cash equivalents of $51.1 million, down from $279.9 million a year ago. Long-term debt was $2,136.2 million, down around 12.3% year over year.

SMG’s Outlook

The company reaffirmed its full-year adjusted fiscal 2025 outlook initially shared in early June. Key projections include low single-digit growth in U.S. Consumer net sales, excluding non-recurring sales from AeroGarden and bulk raw materials. The adjusted gross margin is expected to be around 30%, with adjusted EBITDA anticipated between $570 million and $590 million. Adjusted earnings per share are projected to be at least $3.50, and free cash flow is estimated at approximately $250 million.

SMG’s Price Performance

Shares of Scotts Miracle-Gro have lost 10.5% in the past year against a 10.2% rise of the industry.

SMG’s Zacks Rank & Key Picks

SMG currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Sylvamo Corporation SLVM, Avino Silver & Gold Mines Ltd. ASM and Barrick Mining Corporation B.

Sylvamo is slated to report second-quarter results on Aug 8. The Zacks Consensus Estimate for earnings is pegged at 47 cents. SLVM beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 6.5%. SLVM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avino Silver is scheduled to report second-quarter results on Aug 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.

Barrick Mining is slated to report second-quarter results on Aug 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.


 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research