Scotts Miracle-Gro (SMG) Tops Q2 Earnings Estimates

Core Viewpoint - Scotts Miracle-Gro reported quarterly earnings of $3.98 per share, exceeding the Zacks Consensus Estimate of $3.95 per share, and showing an increase from $3.69 per share a year ago, indicating a positive earnings surprise of 0.76% [1] Financial Performance - The company posted revenues of $1.42 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 5.15%, and a decrease from $1.53 billion in the same quarter last year [2] - Over the last four quarters, Scotts has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Scotts shares have declined approximately 19.3% since the beginning of the year, compared to a decline of 5.5% in the S&P 500 [3] - The current Zacks Rank for Scotts is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.12 on revenues of $1.22 billion, and for the current fiscal year, it is $3.40 on revenues of $3.54 billion [7] - The trend of estimate revisions for Scotts has been unfavorable ahead of the earnings release, which may impact future stock performance [6] Industry Context - The Agriculture - Operations industry, to which Scotts belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]