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MARYSVILLE, Ohio - The Scotts Miracle-Gro Company (NYSE:SMG), a leading marketer of consumer lawn and garden products with a market capitalization of $3.4 billion, has reaffirmed its full fiscal year 2025 guidance. This announcement comes as the company experiences continued growth in consumer point-of-sale (POS) units and dollars during the key lawn and garden season. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, supported by strong cash flow metrics and profitability indicators.
As of the Memorial Day weekend, year-to-date increases in POS units and dollars were consistent with trends from the first half of the fiscal year. In a financial boost, the company also projects that its interest expense will be roughly $30 million lower than the previous year, exceeding initial estimates of a $15 million to $20 million decrease. Additionally, Scotts anticipates a smaller increase in diluted share count than previously expected, with an estimate of a 1 million rise compared to the prior estimate of 2 million. The company has demonstrated its commitment to shareholder returns, maintaining dividend payments for 21 consecutive years, with a current dividend yield of 4.5%.
The company’s chairman and CEO, Jim Hagedorn, expressed confidence in the company’s performance and its ability to meet financial commitments for the year. The firm’s CFO, Mark Scheiwer, echoed this sentiment, highlighting strong consumer demand and retailer replenishment rates as the basis for their confidence in the full-year guidance. InvestingPro analysis reveals that 5 analysts have recently revised their earnings upwards for the upcoming period, with the company expected to achieve profitability this year.
Scotts Miracle-Gro has outlined its fiscal year 2025 guidance, which includes U.S. Consumer net sales growth in the low single digits, excluding non-repeat sales for AeroGarden and bulk raw material sales. Non-GAAP adjusted gross margin is expected to be around 30 percent, with non-GAAP adjusted EBITDA projected between $570 million and $590 million. The company also anticipates a free cash flow of approximately $250 million.
These financial targets are aimed at strengthening the company’s debt position, with a goal to bring leverage below 3.5 by the end of fiscal 2027. Based on InvestingPro’s Fair Value analysis, the stock currently appears fairly valued, with additional ProTips and detailed financial metrics available to subscribers. Scotts Miracle-Gro will provide further details during its presentation at the William Blair 45th Annual Growth Stock Conference in Chicago.
The company, which reports approximately $3.6 billion in sales, is recognized for its market-leading brands such as Scotts®, Miracle-Gro®, and Ortho®. Its subsidiary, The Hawthorne Gardening Company, is also a prominent player in the indoor and hydroponic growing segment. This reaffirmation of guidance reflects the company’s robust position in the industry and its optimistic outlook for the remainder of the fiscal year. The information in this article is based on a press release statement from Scotts Miracle-Gro Company.
In other recent news, Scotts Miracle-Gro reported its second-quarter 2025 earnings, revealing a slight beat on earnings per share (EPS) but a miss on revenue expectations. The company posted an EPS of $3.98, surpassing the forecasted $3.94, while revenue came in at $1.42 billion, falling short of the expected $1.5 billion. Despite this revenue miss, the company reaffirmed its full-year EBITDA guidance of $570 to $590 million, showing confidence in achieving its financial targets. UBS analysts maintained a Neutral rating on Scotts Miracle-Gro stock, with a price target of $54.00, citing the need for more clarity on future margin expansion and earnings growth. The analysts noted that the company is expected to provide an update on its fiscal year 2025 guidance at an upcoming conference. Additionally, the company highlighted improvements in its gross margin, which increased by nearly 500 basis points, indicating better cost management. Scotts Miracle-Gro also plans to focus on organic growth and potential acquisitions to drive future performance. These recent developments reflect the company’s ongoing efforts to navigate a challenging market environment while maintaining a positive outlook for its financial performance.
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