Miracle-Gro maker's shares sink as cuts profit forecast

Scotts Miracle-Gro

08/06/2022 13:34

** Scotts Miracle-Gro  SMG.N  shares drop 13.4% to $88.75 in
premarket trading after it says demand for products such as lawn
fertilizer and grass seed has fallen more than expected, while
rising commodity costs are also hitting profits  urn:newsml:reuters.com:*:nGNX252Hk7
    ** The company now expects adjusted earnings per share (EPS)
of $4.50 to $5, which is below analysts' estimates of $6.99
    ** SMG says full-year sales at its Hawthorne Gardening
business are now expected to fall by 40% to 45%
    ** In May, SMG had said it did not expect to meet its prior
FY EPS forecast of $8 or more    
    ** SMG stock among biggest NYSE-listed percentage losers and
on track to break a four-day winning streak if losses hold
    ** Shares in SMG are down 36.5% so far this year. The six
member S&P 1500 Fertilizers & Agricultural chemicals index
 .SPCOMCHFA  has gained 25.3% over the same period

 (Reporting by Uday Sampath in Bengaluru)
 ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday
  ;))