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Benzinga
111 days

Scotts Miracle Gro Pulls Hawthorne Guidance, Citing Uncertain Environment In Cannabis Industry, Stock Falls

1. SMG's Q2 2025 EPS rose 8% to $3.98, above consensus. 2. Sales fell 7% year-over-year to $1.42 billion, missing expectations. 3. U.S. consumer sales decreased 5%, affected by a slow lawn season. 4. Hawthorne sales plummeted 51% to $32.7 million amidst cannabis uncertainties. 5. Adjusted EBITDA was $402.8 million, showing slight improvement year-over-year.

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FAQ

Why Bearish?

Despite an EPS beat, sales decline and poor Hawthorne performance indicate challenges. Historically, sales misses have negatively impacted stock prices.

How important is it?

The earnings report provides critical insights into SMG's current performance and future expectations, particularly in consumer sales.

Why Short Term?

Upcoming retail trends and seasonal adjustments will affect performance. Investors may react quickly to recent trends.

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