Scotts Miracle-Gro (SMG.US)— stock climbed 5% in extended trading after company revised its fiscal 2020 guidance. The lawn products company’s increased sales and earnings guidance mainly due to stronger growth in the U.S. Scotts Miracle-Gro now expects sales growth in the range of 16% to 18% for the fiscal year while in May company anticipated an increase of 6% to 8%. It also estimates adjusted non-GAAP earnings to be in the range of $5.65 to $5.85 per share compared to previous guidance of $4.95 to $5.15 per share. “An unprecedented number of consumers planting and maintaining gardens has led to a nearly 40 percent increase in consumer purchases of Miracle-Gro branded soils and more than 30 percent increase in plant food,” said Jim Hagedorn, chairman and CEO, in a company statement. “Consumer purchases of our products at our largest four retail partners were up 44% in May, and we are now up approximately 19% year-to-date at the time of this announcement.” Hagedorn said. The company added that it has seen a 40% increase in purchases of its branded soils and more than a 30% rise of its plant food sales as well as strong demand for outdoor and indoor pest control products.
Scotts Miracle-Gro (SMG.US) stock price surged in pre-market trading. Should upbeat moods prevail, then resistance at $151.70 per share may come into play. However if sellers will manage to take control, then local support can be found at $131.97 per share. Source: xStation5
