Scotts Miracle-Gro Reduces FY Sales Guidance - Quick Facts

(RTTNews) - The Scotts Miracle-Gro Company (SMG) announced the company expects effective tax rate to decline to a range of 26 to 27 percent in fiscal 2018, a rate that will likely remain consistent in future years. As a result of the lower rate, the company increased its Non-GAAP adjusted earnings guidance to a range of $4.60 to $4.80 per share from the previous range of $4.15 to $4.35 per share. The company reduced its full-year sales outlook to a range of 2 to 4 percent due to the slow start at Hawthorne but maintained a consistent operating earnings outlook primarily due to tighter SG&A spending.

First-quarter non-GAAP adjusted loss from continuing operations was $62.2 million, or $1.08 per share, compared with a loss of $52.6 million, or $0.88 per share, last year. The company said the year-over-year difference in non-GAAP performance is primarily non-operating in nature and due to both lower tax rate and share count, which had a negative impact of approximately $0.15 on earnings.

Company-wide sales increased 7 percent in the first quarter driven by the benefit of recently completed Hawthorne acquisitions.