NEW YORK (TheStreet) -- Scotts Miracle-Gro (SMG) said it expects full-year earnings to fall short of Wall Street's expectations because of unfavorable weather conditions in the United States and increased promotional activity.
The Marysville, Ohio-based lawn and garden care products company said it expects adjusted earnings of $3.10 to $3.20 per share for fiscal 2011 ending in September. That view is below the average estimate of analysts polled by Thomson Reuters for a profit of $3.65 a share. The company said it sees sales for the year coming in flat with its fiscal 2010 total of $3.14 billion, which is actually above the consensus view of $3.04 billion.
"Weather has been the primary driver for the shortfall all the way through May," said Scotts Miracle-Gro CEO Jim Hagedorn. "We also were impacted by a more promotional retail landscape and changes in certain retailer strategies within the mass merchandise channel."
The stock was last quoted at $50.75, down 3%, on volume of around 320,000, according to Nasdaq.com. Based on a regular session close at $52.34, the shares were up 2.2% so far in 2011, although they hit a 52-week high of $60.62 as recently as May 10.Miracle-Gro said it plans to report its full third-quarter results on August 2. On May 3, the company reported an adjusted profit of $150.3 million, or $2.22 a share, for its fiscal second quarter ended on April 2 with sales up 8% to $1.13 billion. --Written by Joe Deaux in New York.
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