Scotts Miracle-Gro Co. (SMG) Friday provided a financial guidance for the full year 2013. The mid-point of the earnings outlook is expected beat current Street estimates, while revenues are anticipated to fall short of expectations.
The Marysville, Ohio-based company expects adjusted earnings from continuing operations of $2.50 to $2.75 per share. Analysts polled by Thomson Reuters currently estimate earnings of $2.55 per share for the year. Analysts' estimates typically exclude one-time items.
Scotts Miracle-Gro expects full-year 2013 sales to grow about 1 to 3 percent on flat unit volume and improved pricing. This indicates revenues of $2.86 billion to $2.91 billion. Analysts currently estimate revenues of $2.91 billion for the year.
Scotts Miracle-Gro, a maker of lawn and garden care products, anticipates gross margin rate to improve with leverage in selling, general and administrative costs. Operating margin is expected to be in the range of 11 to 11.5 percent.
"We enter 2013 with confidence in our initiatives to drive gross margin improvement, reduce SG&A, improve cash flow and strengthen the overall enterprise," said Jim Hagedorn, chairman and chief executive officer.
SMG is currently trading at $42.97, up $1.12 or 2.68%, on the NYSE.
by RTT Staff Writer
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