The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsBrad Chelton - VP of Treasury, Tax & Investor RelationsCarla Casella - Managing DirectorJim Hagedorn - Chairman and CEOJosh Meihls - Senior VP and Chief Growth OfficerMark Scheiwer - EVP, CFO and Chief Accounting OfficerNate Baxter - President and COOConference Call ParticipantsAndrew Carter - AnalystChris Carey - Senior Equity AnalystJonathan Matuszewski - Consumer AnalystJoseph Altobello - Managing Dir ...

The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsBrad Chelton - VP of Treasury, Tax & Investor RelationsCarla Casella - Managing DirectorJim Hagedorn - Chairman and CEOJosh Meihls - Senior VP and Chief Growth OfficerMark Scheiwer - EVP, CFO and Chief Accounting OfficerNate Baxter - President and COOConference Call ParticipantsAndrew Carter - AnalystChris Carey - Senior Equity AnalystJonathan Matuszewski - Consumer AnalystJoseph Altobello - Managing Dir ...

The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Speaker1Good morning. Welcome to Scotts Miracle-Gro's first quarter 2026 earnings webcast. I'm Brad Chelton, Head of Investor Relations. Speaking today are Chairman and CEO, Jim Hagedorn, President and Chief Operating Officer, Nate Baxter, and Chief Financial Officer and Chief Accounting Officer, Mark Scheurer. Jim will provide a strategic overview, Nate will provide a business update, and Mark will follow with a review of ...

Core Viewpoint - Central Garden (CENT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook for the company's earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling activity that affects stock prices [4]. Central Garden's Earnings Outlook - Central Garden's rising earnings estimates and the Zacks Rank upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. - The Zacks Consensus Estimate for Central Garden indicates expected earnings of $2.76 per share for the fiscal year ending September 2026, with a 2% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [7].

Core Insights - Scotts Miracle-Gro is recognized as the leader in the consumer lawn and garden sector [2] - The company also has a hydroponics business that it is planning to divest [2] Company Overview - Scotts Miracle-Gro is a prominent player in the consumer lawn and garden market [2] - The company is currently exploring divestiture options for its hydroponics segment [2]

Summary of Scotts Miracle-Gro Conference Call (December 09, 2025) Company Overview - **Company**: Scotts Miracle-Gro (NYSE: SMG) - **Industry**: Consumer Lawn and Garden Products, Hydroponics Key Points U.S. Consumer Business Performance - The U.S. consumer business experienced a cumulative sales growth of approximately 6%-7% over fiscal years 2024 and 2025, translating to an annual growth rate of about 3%-3.5% [2][4] - Recent volatility in sales is attributed to post-COVID adjustments, inventory management, and a shift in sales phasing from 60% in the first half to 55% in the past year [3][4] - Retailer inventories are reported to be healthy, supporting future growth initiatives [4] Future Growth Projections - The company anticipates annual sales growth of at least 3% moving forward, with historical growth rates averaging between 3% to 5% over a decade [5][6] - Innovation, e-commerce expansion, and strategic pricing are identified as key growth drivers [6][17] E-commerce and Market Trends - E-commerce sales currently account for about 10% of total POS sales, up from less than 2% five years ago, with expectations for continued double-digit growth [34] - The company is focusing on expanding its presence in the e-commerce space, particularly through partnerships with major retailers [20][34] Product Strategy and Market Share - The company gained four points of market share in fiscal year 2024 and netted one point in the following year, indicating resilience against private label competition [31][32] - The strategy includes moving away from low-margin commodity products towards branded offerings, with expectations for mid-single-digit growth in branded products [9][32] Gross Margin Recovery - Gross margins fell from mid-30s to below 24% due to COVID-related buildouts and increased fixed costs, but are projected to recover to 31% by the end of 2025, with a goal of reaching mid-30s in the future [44][48] - Key drivers for margin recovery include pricing strategies, cost savings initiatives, and investments in automation and technology [49][50] Consumer Engagement and Education - The company aims to increase household penetration in lawn care, currently at about 11%, by focusing on education and frequency of product use [26][27] - There is a strategic shift towards promoting multi-step lawn care programs to enhance consumer engagement [28][30] Innovation and M&A Strategy - The innovation pipeline is expected to contribute significantly to future growth, with plans for small tuck-in acquisitions to enhance product offerings [17][18] - The company is exploring opportunities in adjacent categories, particularly in pest control and gardening, to expand its market presence [22][23] Demographic Focus - A dedicated team is being formed to engage with the Hispanic demographic, recognizing its growing importance in the consumer base [21][22] Conclusion - Scotts Miracle-Gro is positioning itself for consistent growth through strategic innovation, e-commerce expansion, and a focus on branded products while navigating the challenges of post-COVID market dynamics and improving gross margins [10][50]

Core Insights - Scott's Miracle Grow is focusing on balancing innovation with sustainability while modernizing its legacy brands to attract younger consumers, particularly millennials and Gen Z [1][2][3] - The company reported a loss in its latest earnings, but positive EBIT and a significant margin recovery of almost 500 basis points over the past year, indicating operational improvements [1][2] - The decision to exit the cannabis business through its Hawthorne subsidiary is driven by a challenging market environment, with plans to find a partner outside the company [3][4] Financial Performance - The company experienced a loss in Q4, which is typical due to its seasonal business model, with profits primarily generated in fiscal Q2 and Q3 [1][2] - Free cash flow for the most recent period was just under $275 million, with a focus on deleveraging and reducing historical debt levels [13][15] - The company aims for $150 million in supply chain cost savings over three years, with a significant portion driven by technology improvements in demand planning and forecasting [4][5] Consumer Engagement and Target Demographics - The company is targeting two main demographics: older consumers (baby boomers and Gen X) focused on traditional lawn aesthetics, and younger consumers (millennials and Gen Z) who prioritize health, wellness, and creating engaging outdoor spaces [2][3] - Younger consumers are increasingly interested in indoor gardening and sustainable practices, leading the company to adapt its messaging and marketing strategies to resonate with this audience [2][3][4] - The company recognizes the need for authenticity in its branding and is shifting its marketing efforts towards digital platforms to better engage younger consumers [2][3] Product Development and Sustainability - Scott's Miracle Grow is committed to increasing the proportion of natural and organic products, with a goal of having at least 25% of its point-of-sale offerings be natural or organic within the next three to four years [3][4] - The company is exploring partnerships and research into biological solutions to reduce reliance on synthetic chemicals, aiming for a more sustainable product line [3][4] - Modernization efforts include updating packaging aesthetics to appeal to younger consumers and developing products tailored to regional needs, particularly in areas with different climate challenges [3][4][12] Strategic Focus and Future Plans - The company is prioritizing its core lawn and garden business while considering small tuck-in acquisitions to enhance its brand portfolio [15][16] - There is an emphasis on improving e-commerce presence, with plans to launch a new website that is more engaging and educational for consumers [3][4] - The management is open to exploring larger transformational opportunities in the lawn and garden sector, while maintaining a cautious approach to capital allocation [20][21]

Core Viewpoint - Central Garden & Pet Company is set to release its quarterly earnings on November 24, 2025, with analysts predicting an EPS of -$0.20 and revenue of approximately $657.86 million for the quarter [1][6]. Financial Projections - Analysts anticipate a year-over-year decline in earnings and lower revenues, but Zacks Investment Research suggests the company may exceed these estimates, which could positively affect the stock price [2]. - A miss on earnings expectations could lead to a decrease in stock value, making the management's discussion during the earnings call critical for assessing immediate price changes [2]. Financial Metrics - The company has a price-to-earnings (P/E) ratio of 13.98, indicating the amount investors are willing to pay per dollar of earnings [3][6]. - The price-to-sales ratio is 0.61, reflecting the market's valuation of its sales [3][6]. - The enterprise value to sales ratio stands at 0.85, showing the company's total valuation relative to its sales [3]. - The enterprise value to operating cash flow ratio is 7.48, suggesting how the company's cash flow is valued in relation to its enterprise value [4]. - Central Garden has an earnings yield of 7.15%, indicating a return on investment relative to its share price [4]. - The debt-to-equity ratio is 0.90, showing the proportion of debt used to finance the company's assets relative to shareholders' equity [4]. - The current ratio is 3.56, indicating a strong ability to cover short-term liabilities with short-term assets, which is crucial given the challenges of declining earnings and revenue projections [5].

Core Viewpoint - Central Garden (CENT) is expected to report a year-over-year decline in earnings due to lower revenues, with a consensus outlook indicating a quarterly loss of $0.20 per share and revenues of $666.08 million, down 0.5% from the previous year [1][3]. Earnings Expectations - The consensus EPS estimate has been revised 8.33% lower in the last 30 days, reflecting a reassessment by analysts [4]. - A positive Earnings ESP of +6.56% suggests analysts have recently become more optimistic about Central Garden's earnings prospects, despite the stock holding a Zacks Rank of 3 [12]. Earnings Surprise History - Central Garden has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +16.42% surprise in the most recent quarter [13][14]. Market Reaction - The stock price may increase if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - Management's discussion during the earnings call will significantly influence the sustainability of any immediate price changes and future earnings expectations [2].

At 98 years old, service never really ended for Navy veteran Ron Gibbons. >> Well, they say, "You've been here 17 years." I said, "Yeah, they're going to keep me here till I do it right." So, >> customers call him Mr. . Ron.Most days you can find him working in the lawn and garden department at Lowe's in Olter, New York. >> What's the the best type of plant to to get in the ground right now. >> The moms are out now.Yeah. And I told him the dads will be in later. But uh >> after serving his country and 35 ye ...