Lawn and garden care products maker Scotts Miracle-Gro Co. (SMG) reaffirmed its fiscal 2013 outlook for adjusted earnings per share from continuing operations in the range of $2.50 - $2.75, as well as backed its operating cash flow expectations of at least $250 million. On average, 11 analysts polled by Thomson Reuters expect earnings per share of $2.53 for the full year. Analysts' estimates typically exclude one-time items.
The company updated individual components of fiscal 2013 forecast, and projects net sales to range from a 1% decline to an increase of 1% compared with last year, while selling, general and administrative expenses or SG&A are currently expected to decline 3% to 5% for the year. Earlier, Scotts Miracle-Gro forecasted SG&A savings of 2% to 3% for the year.
In addition, the firm confirmed improvement of up to 125 basis points in annual adjusted gross margin rate. Cost-out initiatives remain on schedule, strong management of commodity costs continue, and price increases would also be accretive to the gross margin rate, according to the company.
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