Scotts Miracle-Gro's Q1 Earnings and Revenues Beat Estimates

The Scotts Miracle-Gro Company SMG reported a first-quarter fiscal 2026 (ended Dec. 27, 2025) loss of $125 million or $2.16 per share compared with a loss of $69.5 million or $1.21 per share in the year-ago quarter.

Barring one-time items, adjusted loss from continuing operations was 77 cents per share, narrower than 88 cents a year ago. The figure was also narrower than the Zacks Consensus Estimate of a loss of $1.04.

Net sales decreased around 3% year over year to $354.4 million and beat the consensus mark of $350.6 million.

The Scotts Miracle-Gro Company Price, Consensus and EPS Surprise

The Scotts Miracle-Gro Company price-consensus-eps-surprise-chart | The Scotts Miracle-Gro Company Quote

SMG’s Segment Details

In the fiscal first quarter, net sales in the U.S. Consumer division were down 4% year over year to $328.5 million. It beat our estimate of $312 million. The segment delivered a profit of $9 million, down 8% year over year.

The Hawthorne segment has been reclassified as a discontinued operation. SMG is in advanced discussions for the divestiture of Hawthorne to Vireo Growth, Inc., with an expected completion in the fiscal second quarter.

Net sales in the other segment grew by 1% year over year to $25.9 million in the reported quarter. The figure beat our estimate of $22.2 million. The segment reported a loss of $1.7 million, improving 45% year over year.

SMG’s Balance Sheet

At the end of the quarter, the company had cash and cash equivalents of $8.3 million, up from $5.7 million a year ago. Long-term debt was $2,250.2 million, down around 14.7% year over year.

SMG’s Outlook

The company reaffirmed its full-year fiscal 2026 outlook. Key projections include low single-digit growth in U.S. Consumer net sales. The adjusted gross margin is expected to be at least 32%, with adjusted EBITDA anticipated to grow in the mid-single digits. Adjusted earnings per share are projected to be between $4.15-$4.35, and free cash flow is estimated at approximately $275 million.

SMG’s Price Performance

Shares of Scotts Miracle-Gro have lost 12.6% in the past year compared with 3.2% growth in the industry.

SMG’s Zacks Rank & Key Picks

SMG currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation ALB, Coeur Mining, Inc. CDE and Avino Silver & Gold Mines Ltd. ASM.

Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 53 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.28%. ALB sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in three of the last two quarters and missed once, with the average earnings surprise being 106.61%. CDE currently carries a Zacks Rank #1. 

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%. 

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

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