The Scotts Miracle-Gro Company (NYSE: SMG) shares are trading lower after the company cut its FY22 EPS guidance below analyst estimates.
The company now expects 2022 earnings per share to be between $4.50 and $5.00 versus the consensus estimate of $7.01. The company also expects U.S. Consumer sales to decline 4 to 6 percent.
"POS dollars, however, 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. While there remains enough time in the year to see continued improvement in our controls and gardening categories, that is not likely to be the case with most of the products in our lawn care portfolio," said Jim Hagedorn, chairman and chief executive officer.
The Company will provide more commentary tomorrow, June 9, when it participates in the William Blair 42nd Annual Growth Conference in Chicago.
Scotts Miracle-Gro is the largest provider of gardening and lawn care products in the United States.
Scotts Miracle-Gro has traded as high as $204.45 and as low as $87.11 in a 52 Week period.
At the time of publication, SMG was trading down 9.42% at 92.56 per share.
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