Scotts Miracle-Gro Down 8% After Cutting FY2012 Guidance
Scotts Miracle-Gro (NYSE: SMG) is trading lower on the session after it warned that the company will not achieve its previous FY2012 earnings and revenue guidance. Scotts Miracle-Gro's previous EPS outlook was $2.65-2.85 and revenue growth expectation 6-8%.
Jim Hagedorn, chairman and chief executive officer said, "While we are clearly disappointed that we will fall short of our plans, there have been several key wins during the season that give us reason to be confident moving forward. We have seen unit growth in consumer purchases of our lawn fertilizer products for the first time in several years. Our controls businesses – where growth in consumer purchases has been in the high teens – are having their best season ever. In addition, our mulch business has grown by about 25 percent through the first seven months of the year. Those facts, coupled with market share gains in nearly every category, reinforce our confidence in our strategy and our brands."
Scotts Miracle-Gro is trading 8% lower near the $39.60 level.
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