Investigation Launched into Scotts Miracle-Gro's Financial Disclosures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SMG?
Source: PRnewswire
- Declining Financial Performance: Scotts Miracle-Gro reported a 6% decline in quarterly sales and a 420 basis point drop in gross margin on August 2, 2023, leading to a staggering 25% cut in fiscal year EBITDA guidance, indicating significant operational challenges.
- Stock Price Volatility: Following the disappointing financial results, Scotts' shares plummeted by 19% on August 2, 2023, from $71.44 to $57.86, reflecting investor concerns about the company's future prospects and financial health.
- Legal Action Risks: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, which could result in substantial financial liabilities and further jeopardize the company's stability.
- Investigation Initiation: Kahn Swick & Foti has launched an investigation into whether Scotts' officers breached their fiduciary duties to shareholders, potentially revealing governance issues that could undermine investor confidence and affect stock performance.
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Analyst Views on SMG
Wall Street analysts forecast SMG stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 62.340
Low
51.37
Averages
64.09
High
74.00
Current: 62.340
Low
51.37
Averages
64.09
High
74.00
About SMG
The Scotts Miracle-Gro Company is engaged in the manufacturing, marketing, and sale of products for lawn and garden care and indoor and hydroponic gardening. The Company’s products are primarily sold in North America. The U.S. Consumer segment consists of its consumer lawn and garden business in the United States. Its consumer lawn and garden brands include Scotts, Turf Builder, lawn fertilizer and Scotts, grass seed products; Miracle-Gro soil, plant food, and gardening products; Ortho herbicide and pesticide products, and Tomcat rodent control and animal repellent products. The Other segment consists of its consumer lawn and garden business in Canada. Its products include Turf Builder Halts Crabgrass Preventer with Lawn Food, Turf Builder Weed & Feed5, Turf Builder SummerGuard Lawn Food with Insect Control, Turf Builder Southern Lawn Food, Turf Builder EdgeGuard Mini Broadcast Spreader, Turf Builder Bonus S Southern Weed & Feed₂ Turf Builder Lawn Food and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation Launched into Scotts Miracle-Gro's Financial Disclosures
- Declining Financial Performance: Scotts Miracle-Gro reported a 6% decline in quarterly sales and a 420 basis point drop in gross margin on August 2, 2023, leading to a staggering 25% cut in fiscal year EBITDA guidance, indicating significant operational challenges.
- Stock Price Volatility: Following the disappointing financial results, Scotts' shares plummeted by 19% on August 2, 2023, from $71.44 to $57.86, reflecting investor concerns about the company's future prospects and financial health.
- Legal Action Risks: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, which could result in substantial financial liabilities and further jeopardize the company's stability.
- Investigation Initiation: Kahn Swick & Foti has launched an investigation into whether Scotts' officers breached their fiduciary duties to shareholders, potentially revealing governance issues that could undermine investor confidence and affect stock performance.
See More
Investor Perspectives on Multiple Companies
- Scotts Performance Risk: Scotts Miracle-Gro Company highlighted that poor weather conditions could adversely affect its performance, indicating a high sensitivity of its business to climate factors, which necessitates cautious risk assessment by investors.
- Santander Acquisition Praise: Banco Santander's acquisition of Webster Bank received positive feedback, with a former hedge fund manager praising it as a quality asset, reflecting confidence in the bank's future growth potential.
- Altria Stock Recommendation: Altria Group is advised to reduce holdings as analysts note its stock has surged too quickly, suggesting investors consider locking in some profits to mitigate risk.
- NextDecade's Outlook: NextDecade is viewed as having potential in LNG demand, although analysts maintain a cautious stance on its future performance, recommending investors to remain on the sidelines for now.
See More
Investigation into Scotts Miracle-Gro Company Shareholder Rights
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of Scotts Miracle-Gro Company (NYSE:SMG) breached their fiduciary duties, which could impact corporate governance and shareholder rights.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders can pursue legal remedies without upfront costs, thereby reducing the financial risk associated with participation.
- Importance of Shareholder Involvement: Shareholder participation can drive improvements in company policies, practices, and oversight mechanisms, enhancing transparency and accountability, ultimately benefiting shareholder value.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing its effectiveness in protecting investor rights.
See More
Scotts Miracle-Gro Company Q2 2026 Earnings Call Insights
- Financial Progress: Scotts Miracle-Gro Company achieved a 5% net sales growth in the first half of fiscal 2026, reaching $1.46 billion, indicating a stable growth trajectory while management expresses confidence in future financial targets.
- Share Repurchase Program Launch: The company announced the initiation of a multiyear share repurchase program aiming to buy back at least one-third of outstanding shares, a move intended to enhance shareholder value and optimize capital structure, which is expected to positively impact stock prices.
- New Product Launches: To date, the company has introduced 83 new product SKUs generating $41 million in revenue, demonstrating ongoing efforts in product innovation that are expected to further strengthen market competitiveness.
- E-commerce Growth Potential: Management anticipates generating $800 million in sales growth through e-commerce, reflecting the company's strategic positioning in digital transformation aimed at capturing the growing online consumer market.
See More
Scotts Miracle-Gro Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Scotts Miracle-Gro reported a Q2 non-GAAP EPS of $4.53, beating expectations by $0.51, which reflects the company's robust profitability and boosts investor confidence.
- Stable Revenue Growth: The company achieved $1.46 billion in revenue for Q2, marking a 2.8% year-over-year increase and exceeding market expectations by $60 million, indicating its ability to maintain steady sales growth in a competitive market.
- Fiscal 2026 Outlook: The company reaffirmed its fiscal 2026 guidance, including low single-digit growth in U.S. consumer net sales and a non-GAAP adjusted gross margin rate of at least 32%, laying a solid foundation for future profitability.
- Cash Flow and Leverage Improvement: Expected free cash flow of $275 million will drive the leverage ratio down to the high 3's, demonstrating effective financial management and potential for future investments.
See More
Scotts Miracle-Gro to Announce Q2 Earnings on April 29
- Earnings Announcement Schedule: Scotts Miracle-Gro (SMG) is set to release its Q2 2023 earnings report on April 29 before market open, with consensus EPS estimate at $4.02, reflecting a 1.0% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q2 is $1.4 billion, representing a 1.4% decline year-over-year, which suggests the company is facing challenges in the current market environment that may impact its future growth strategies.
- Historical Performance Review: Over the past two years, SMG has achieved a 100% accuracy rate in EPS estimates while revenue estimates have only met expectations 50% of the time, highlighting the company's reliability in earnings forecasts but also the volatility in revenue projections.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen three upward and three downward revisions, while revenue estimates experienced one upward and five downward revisions, indicating uncertainty that could affect investor confidence and market performance.
See More
Investigation Launched into Scotts Miracle-Gro's Financial Disclosures
- Declining Financial Performance: Scotts Miracle-Gro reported a 6% decline in quarterly sales and a 420 basis point drop in gross margin on August 2, 2023, leading to a staggering 25% cut in fiscal year EBITDA guidance, indicating significant operational challenges.
- Stock Price Volatility: Following the disappointing financial results, Scotts' shares plummeted by 19% on August 2, 2023, from $71.44 to $57.86, reflecting investor concerns about the company's future prospects and financial health.
- Legal Action Risks: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, which could result in substantial financial liabilities and further jeopardize the company's stability.
- Investigation Initiation: Kahn Swick & Foti has launched an investigation into whether Scotts' officers breached their fiduciary duties to shareholders, potentially revealing governance issues that could undermine investor confidence and affect stock performance.
See More
Investor Perspectives on Multiple Companies
- Scotts Performance Risk: Scotts Miracle-Gro Company highlighted that poor weather conditions could adversely affect its performance, indicating a high sensitivity of its business to climate factors, which necessitates cautious risk assessment by investors.
- Santander Acquisition Praise: Banco Santander's acquisition of Webster Bank received positive feedback, with a former hedge fund manager praising it as a quality asset, reflecting confidence in the bank's future growth potential.
- Altria Stock Recommendation: Altria Group is advised to reduce holdings as analysts note its stock has surged too quickly, suggesting investors consider locking in some profits to mitigate risk.
- NextDecade's Outlook: NextDecade is viewed as having potential in LNG demand, although analysts maintain a cautious stance on its future performance, recommending investors to remain on the sidelines for now.
See More
Investigation into Scotts Miracle-Gro Company Shareholder Rights
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of Scotts Miracle-Gro Company (NYSE:SMG) breached their fiduciary duties, which could impact corporate governance and shareholder rights.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders can pursue legal remedies without upfront costs, thereby reducing the financial risk associated with participation.
- Importance of Shareholder Involvement: Shareholder participation can drive improvements in company policies, practices, and oversight mechanisms, enhancing transparency and accountability, ultimately benefiting shareholder value.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing its effectiveness in protecting investor rights.
See More
Scotts Miracle-Gro Company Q2 2026 Earnings Call Insights
- Financial Progress: Scotts Miracle-Gro Company achieved a 5% net sales growth in the first half of fiscal 2026, reaching $1.46 billion, indicating a stable growth trajectory while management expresses confidence in future financial targets.
- Share Repurchase Program Launch: The company announced the initiation of a multiyear share repurchase program aiming to buy back at least one-third of outstanding shares, a move intended to enhance shareholder value and optimize capital structure, which is expected to positively impact stock prices.
- New Product Launches: To date, the company has introduced 83 new product SKUs generating $41 million in revenue, demonstrating ongoing efforts in product innovation that are expected to further strengthen market competitiveness.
- E-commerce Growth Potential: Management anticipates generating $800 million in sales growth through e-commerce, reflecting the company's strategic positioning in digital transformation aimed at capturing the growing online consumer market.
See More
Scotts Miracle-Gro Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Scotts Miracle-Gro reported a Q2 non-GAAP EPS of $4.53, beating expectations by $0.51, which reflects the company's robust profitability and boosts investor confidence.
- Stable Revenue Growth: The company achieved $1.46 billion in revenue for Q2, marking a 2.8% year-over-year increase and exceeding market expectations by $60 million, indicating its ability to maintain steady sales growth in a competitive market.
- Fiscal 2026 Outlook: The company reaffirmed its fiscal 2026 guidance, including low single-digit growth in U.S. consumer net sales and a non-GAAP adjusted gross margin rate of at least 32%, laying a solid foundation for future profitability.
- Cash Flow and Leverage Improvement: Expected free cash flow of $275 million will drive the leverage ratio down to the high 3's, demonstrating effective financial management and potential for future investments.
See More
Scotts Miracle-Gro to Announce Q2 Earnings on April 29
- Earnings Announcement Schedule: Scotts Miracle-Gro (SMG) is set to release its Q2 2023 earnings report on April 29 before market open, with consensus EPS estimate at $4.02, reflecting a 1.0% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q2 is $1.4 billion, representing a 1.4% decline year-over-year, which suggests the company is facing challenges in the current market environment that may impact its future growth strategies.
- Historical Performance Review: Over the past two years, SMG has achieved a 100% accuracy rate in EPS estimates while revenue estimates have only met expectations 50% of the time, highlighting the company's reliability in earnings forecasts but also the volatility in revenue projections.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen three upward and three downward revisions, while revenue estimates experienced one upward and five downward revisions, indicating uncertainty that could affect investor confidence and market performance.
See More
