Scotts Miracle-Gro shares slide after earnings miss
Scotts Miracle-Gro Co.'s shares slid 3.7% in premarket trade Wednesday, after the lawn and garden care company missed profit and sales estimates for its fiscal fourth quarter. The company said it had a net loss of $146.9 million, or $2.36 a share, in the quarter to September 30, wider than the loss of $33.4 million, or 72 cents a share, in the year-earlier period. The adjusted per-share loss came to 75 cents, wider than the 67 cent FactSet consensus. Sales rose to $433.9 million from $376.7 million, missing the FactSet consensus of $441 million. Chief Executive Jim Hagedorn said fiscal 2018 was one of the company's most challenging years in recent memory. "Our U.S. Consumer business, however, had a strong second half following unfavorable early season weather. The Hawthorne team also made substantial progress in recent months, integrating the Sunlight acquisition to enable strong benefits for 2019." The company said it now expects sales to grow 10% to 11% in fiscal 2019. "We expect pricing will add 3 percent to the U.S. Consumer segment on a full-year basis, but also anticipate some unit decline from retailer merchandising decisions and continued inventory productivity initiatives," Chief Financial Officer Randy Coleman said. "Additionally, the contractual changes in our Roundup marketing agreement will result in an approximate 100 basis point decline to sales in this segment on a full-year basis." Shares have fallen 33.7% in 2018, while the S&P 500 has gained 3.1%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.