Scotts Miracle-Gro (SMG) Misses Q2 EPS by 21c; Reaffirms

Scotts Miracle-Gro (NYSE: SMG) reported Q2 EPS of $2.06, $0.21 worse than the analyst estimate of $2.27. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.12 billion.

Scotts Miracle-Gro reaffirms FY2015 EPS of $3.40-$3.60, versus the consensus of $3.53.

"Consumer engagement in April was outstanding and on a year-to-date basis through May 3, consumer purchases of our products in the U.S. are up 5 percent," said Jim Hagedorn, chairman and chief executive officer. "Now that the weather has broken in the northeast, we're seeing strong engagement in all parts of the U.S. I'm especially encouraged by double-digit increases in the Midwest and a 7 percent increase on the west coast, despite the highly publicized impact of the drought in California.

"From a brand perspective, we're especially pleased with our Ortho business, which has been gaining market share throughout the season as consumers respond to our aggressive marketing efforts. The resurgence of the mass retail consumer is also encouraging and has led to a double-digit increase in that channel. Finally, we're seeing strong consumer support for our new products, especially Scotts Outdoor Cleaner with OxiClean™.

"The business is exactly where we had hoped it would be as we have now reached the peak of the lawn and garden season. While the extended winter weather caused second quarter shipments to finish slightly behind our plan, that shortfall has been overcome. The strong momentum of the business allows us to confidently re-affirm our full-year adjusted earnings guidance of $3.40 to $3.60 per share."

For earnings history and earnings-related data on Scotts Miracle-Gro (SMG) click here.

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