Scotts Miracle-Gro Tumbles on Tempered Annual Outlook
Scotts Miracle-Gro Co. (SMG), the largest marketer of branded lawn-care products, declined the most in more than a month after saying it may fall short of the growth it had forecast for the fiscal year, citing slowing U.S. sales.
Scotts fell 6.6 percent, the most since May 8, to $40.21 at the close in New York. The Marysville, Ohio-based company has dropped 14 percent this year.
Scotts, which sells its products through chains such as Lowe’s Cos. (LOW) and Home Depot Inc., said in a statement yesterday that consumer purchases at its largest U.S. retail partners had risen 3 percent in the year so far, compared with 8 percent at the start of May. Sales growth in the year ending Sept. 30 may miss the company’s earlier forecast of 6 percent to 8 percent, according to the statement.
Earnings excluding certain items may not reach a forecast of $2.65 to $2.85 a share, the company said. The average estimate of analysts had been $2.81, according to data compiled by Bloomberg.
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