Scotts Miracle-Gro Q3 Profit Beats, Revenue Misses

Scotts Miracle-Gro reported third-quarter adjusted earnings per share of $2.59, beating analyst expectations even as revenue slipped 1.2% to $1.19 billion, missing consensus estimates. Profitability improved due to cost reductions and a favorable mix of higher-margin branded products. The U.S. Consumer segment grew sales by 1%, while the Hawthorne segment, focused on indoor and hydroponic gardening, experienced a 54% decline. Gross margin rates improved, and management reaffirmed its full-year guidance, projecting low single-digit growth in U.S. Consumer sales and non-GAAP adjusted earnings of at least $3.50 per share. CEO Jim Hagedorn cited steady consumer demand and an extended lawn-and-garden season as positives. Scotts has exceeded consensus EPS estimates in three of the last four quarters, and its near-term outlook will depend on future earnings estimate revisions and management commentary.