Scotts Miracle-Gro Slashes FY22 Outlook

(RTTNews) - Scotts Miracle-Gro Co. (SMG) on Wednesday slashed its adjusted earnings and U.S. Consumer sales growth guidance for the full-year 2022, due primarily to above average declines in lawn fertilizer and grass seed sales, which command higher prices and margins. These sales also tend to be more susceptible to poor spring weather.

For fiscal 2022, the company now projects adjusted earnings in a range of $4.50 to $5.00 per share on U.S. Consumer sales decline of 4 to 6 percent. Hawthorne sales are now expected to decline 40 to 45 percent for the year ending September 30, 2022.

Previously, the company expected adjusted earnings of $8 or more on U.S. Consumer sales growth of plus-or-minus 2 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $7.01 per share on a sales decline of 9.7 percent to $4.45 billion for the year. Analysts' estimates typically exclude special items.