It has been about a month since the last earnings report for Scotts Miracle-Gro (SMG). Shares have added about 6.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Scotts due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for The Scotts Miracle-Gro Company before we dive into how investors and analysts have reacted as of late.
Scotts Miracle-Gro's Q1 Earnings and Revenues Beat Estimates
Scotts Miracle-Gro 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.
Segment Highlights
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.
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.
Financials
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in fresh estimates.
VGM Scores
Currently, Scotts has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Scotts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The Scotts Miracle-Gro Company (SMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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