NEW YORK (TheStreet) -- Lawn and garden company Scotts Miracle-Gro (SMG) - Get Report has raised its full-year adjusted outlook to a range of $3.25 to $3.35 a share, from earlier expectations of at least $3.25 a share, based on expectations of strong, continued demand for its products in the U.S.
Analysts, on average, were expecting full-year earnings of $3.30 a share.
Shares of Scotts Miracle-Gro have fallen 4.6% to $45.09 Wednesday morning, along with the broader indices.
Purchases of the company's products in the country have risen more than 6% year-to-date, with improvements occurring in every major product category, Scotts Miracle-Gro said in a press release.
Scotts Miracle-Gro is expecting sales to grow by 5% to 7% for the full year, and gross margins to improve by up to 100 basis points. The company has also reaffirmed its free cash flow outlook of at least $200 million. In May, Scotts Miracle-Gro announced a cash dividend of 12.5 cents a share.
Analysts of the company have noted its history of successful product launches, owing to Scotts Miracle-Gro's local approach to product launches, even the national ones. The company is known for its ability to appeal to the unique gardening needs of different communities during different times of the year.
For example, the company is prone to "weather-triggered radio advertising," where it will, for example, push a certain plant product because it would fare in current weather conditions, according to Morningstar analyst Zoe Tan.
Despite the marketplace horrors of 2009, the company was positioned to become a solid play for 2010, as America turned to low-cost lifestyle surrogates in lieu of other forms of entertainment, such as trips to the mall and movie theaters.
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-- Reported by Andrea Tse in New York
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