Scotts Miracle-Gro Shares Slide 5% After Company's Earnings Miss

By Ciara LinnaneMarketsMarketWatch Pulse

Shares of fertilizer, seeds and nutrients producer Scotts Miracle-Gro Co. tumbled 5% Tuesday, after the company missed earnings estimates for its fiscal second quarter. Analysts at Raymond James said there was a tough comparison in the base period for the U.S. business after an early start to spring in 2016. The 3% decline in sales was mostly due to a 7% decline in the U.S. consumer business, which rose 16% in the year-earlier period in warmer weather, they wrote in a note. Analysts said the news that the company has received a binding offer for its European and Australian operations in a deal expected to close in the fourth quarter that will dilute EPS by 20 cents. Raymond James reiterated a market perform rating on the stock. Shares are down 3.4% in 2017, while the S&P 500 has gained 6.6%.

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