ScottsMiracle-Gro Co. (NYSE:SMG) reported Tuesday stronger-than expected third-quarter earnings, driven primarily by continued consumer interest in gardening activities and momentum from its regionalization efforts.
The maker of lawn-care products posted net income of $175.9 million, or $2.59 a share, compared with $147.8 million, or $2.24 a share, in the same quarter last year, and landing ahead of average analyst estimates of $2.45, according to Thomson Reuters data.
Revenue for the Marysville, Ohio-based company was $1.24 billion, up 1% from $1.23 billion a year ago, and marginally beating the Street’s view of $1.23 billion.
Improved earnings were boosted by a more than 5% increase in consumer purchases at major U.S. retailers.
ScottsMiracle CEO Jim Hagedorn said the business and earnings were “strong” and “healthy.”
“We will continue to make wise investments that drive profitable long-term growth while also increasing the amount of cash we return to our shareholders,” he said. “Our continued success demonstrates the power of our brands with consumers, the strength of our retail partnerships and the resiliency of our category.”
Last quarter, ScottsMiracle’s board of directors authorized the repurchase of up to $500 million of common shares over the next four years.
In addition, a quarterly dividend, increased to 25 cents a share, which is double the current level, will be paid to shareholders.
The company reaffirmed its full-year non-GAAP EPS in the range of $3.25 to $3.35.