(RTTNews) - Shares of The Scotts Miracle-Gro Company (SMG) are falling more than 8% in the morning trade on Wednesday after the company lowered its full-year outlook.
The Scotts Miracle-Gro Company engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening.
"POS dollars will likely fall short of our initial assumption of flat from 2021 levels due primarily to above average declines in lawn fertilizer and grass seed, which command higher prices and margins but also tend to be more susceptible to poor spring weather," said Jim Hagedorn, chairman and chief executive officer.
Adjusted earnings per share are now expected in a range of $4.50 to $5.00, down from prior outlook of $8 or more. On average, 12 analysts polled by Thomson Reuters expect the company to report earnings of $7.01 for the year.
Further, U.S. consumer sales are expected to decline 4 to 6 percent, and Hawthorne sales are now expected to decline 40 to 45 percent for the year, the company said. Previously, it was expecting U.S. consumer sales growth of plus-or-minus 2 percent.
SMG is at $93.47 currently. It has traded in the range of $87.11-$207.34 in the past 1 year.
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